This year the level of office construction across London has soared to an all time high according to Deloitte Real Estates annual London Office Crane Survey.
In its 20th year the survey looks at the number of new office developments that have started in the capital. The latest suggests that more than 51 new office buildings have begun construction in the last six months, putting building work at a 20 year record.
Chris Lewis head of occupier advisory at Deloitte said, “Availability is the lowest it’s been for 15 years. The amount of development we’ve seen feeding through over the past five years has been below average, and as a result there has been very little space completed,” he said. “It is a surprise to see this many new schemes.”
He went on to say, “the pendulum is swinging away from landlords back towards tenants, with greater choice leading to more opportunity”. These record increases suggest demand has not slowed down over Brexit fears for the UK economy.
So what is currently under construction in London?
New Buildings in London
By far the largest building to start in the last six months has got to be 70 Farringdon Street right on the fringe of the area known as Midtown. It’s a colossal 843,000 square feet and due for completion in 2017. It is one of a number of new developments in this part of town which has seen prices soar. Availability has become limited as businesses look for alternatives away from the West End.
However, topping 70 Farringdon Street is the 40 storey 100 Bishopsgate building which at 867,000 square feet is located in the heart of the City skyscraper belt close to the Gherkin on St Mary Axe.
So these along with many of the other 51 developments are already 42% let at this early stage. Proving popular with a mix of businesses across the technology, financial and media sectors.
Interestingly, the London Tall Building Survey 2016 listed 94 tall buildings submitted for planning consent in the last year. Making a total of over 200 high rises waiting to start construction. By far the tallest of these is One Undershaft at 73 storey’s it will be the City of London’s tallest building and the second tallest in London after The Shard.
We will keep you posted on developments over the summer as new buildings launch and others start construction.
Main photo by Alamy