London office construction at five-year high
The level of office construction being witnessed across London has now reached a five-year high, new figures from Deloitte Real Estate have revealed.According to the organisation's latest London Office Crane Survey, there are now 71 developments across the city underway, with the aim of delivering 9.7 million sq ft of new office accommodation for tenants once complete.The average size of projects currently underway in London's West End stands at 64,000 sq ft, while in the City, this value rises to 223,000 sq ft.Overall, the City remains the most active area for new office construction projects at present, with 5.13 million sq ft of new space in the pipeline. This compares to 1.46 million sq ft in the West End and is considerable more than the Docklands (540,000), King's Cross (782,000), Midtown (0.16 million) and Southbank (731,000).Anthony Duggan, head of research at Deloitte Real Estate, said: "This latest report reflects the improving confidence being seen from both office occupiers and developers. Leasing activity of new space has increased and construction remains active with 28 new schemes on site this survey."We are now seeing rents move forward again following a pause over the last couple of years."Furthermore, the report revealed a considerable increase in leasing activity on completed space over the last 12 months, with 56 per cent completed lettings during Q3 this year compared to just 28 per cent let in the same period of 2012.At present, the business sectors that are most active at taking space across the capital are TMT (38 per cent), financial (27 per cent), insurance (21 per cent), corporate (nine per cent), government (four per cent) and charity (0.3 per cent).Finally, the report showed the five largest new constructions taking place across London at present are 25 Churchill Place, 1 & 2 Fitzroy Place, 20 Fenchurch Street, Aldgate Tower and 1 & 2 New Ludgate.
--- Ends ---