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Office Regeneration Plans to Hit London

The biannual London Office Crane Survey showed that recent plans are showing an interesting timeline ahead for London construction.

Thirty-seven new schemes have shown face in the past six months, adding a further 3.5m sq ft to the development pipeline.

Office space currently undergoing construction in London right now is 13.2m sq ft which is a 12% increase on the previous survey by London Office Crane Survey.

Mike Cracknell, director at Deloitte Real Estate, said: “London’s office market remains resilient in the face of uncertainty as we witness an encouraging increase in new construction starts. This is testament to developers’ continued confidence in London’s office leasing market long-term.”

King’s Cross revealed four new projects, boosting a whole 26% of all new construction plans. The average size of London’s new developments rose from 80,000 sq ft to 96,000 sq ft.

Construction activity in the capital is generally dominated by the City of London with a total of 6.3 sq ft across 33 schemes, which is 51% of the total amount running through the city.

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As workers begin to work on eight refurbishments to deliver 800,000 sq ft of grade A space, it is evident that large-scale refurbishments are now higher in demand.

Through the West End, there has been a 10% rise in office development with 27 schemes run by the London Office Crane Survey taking up 1.9m sq ft under construction.

Cracknell said: “Quite simply, developers would not start construction if the demand for leasing offices was not there, or expected to be there, especially in the submarkets outside of the City, West End and Midtown.”

“Over half (55%) of the office space under construction is already let and for larger schemes over three quarters (78%) is already committed to. Notably, occupiers in the financial services sector have pre-let 2.1m sq ft of space that is still under construction. This is a 50% increase in six months and suggests there is confidence the sector remains committed to London.”

Construction plans for London have seen a vast improvement over the past six-month period and are continuing to increase, with new projects arising on every corner of the capital.

Specialists in Construction Insurance

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