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London building soars

London building soars

Over the last six months, the amount of office space being built in London has risen by 18 per cent to 11.1 million sq m, according to figures from the latest London Office Crane Survey by Deloitte Real Estate.During that period, 26 new office development schemes have begun work, and construction levels have reached levels last seen in 2009.Steve Johns, head of City leasing at Deloitte Real Estate, said: “Cranes will be dominating London’s skyline for the foreseeable future as construction activity keeps pace with healthy occupier demand. 4.3 million sq ft of the 11.1 million sq ft under construction has already been let, up 22 per cent from our last survey.“Looking ahead, developers’ sentiment remains high, as 21 of the new starts totalling 2.6 million sq ft are speculative developments.”The volume of new office space completed in 2015 is expected to be slightly lower than in previous years, but a 24 per cent rise in demolition activities suggests that there are plenty of new buildings in the pipeline.Overall, most of the space (44 per cent) is being leased by tech, media and communications companies, followed by financial companies, which have agreed to take on 27 per cent of the new office space. The surge in office construction has coincided with a wider drive to build more residential properties, meaning that the industry is likely to see healthy profits over the next few years.There is also good growth across different areas of London. In the City, there is currently 5.7 million sq ft under development, 1.3 million sq ft is now underway in Midtown, while in the West End activity has increased by five per cent, bringing its pipeline total to 2.4 million sq ft.The biggest single office project that was begun over the six-month period was the 867,000 sq ft tower at 100 Bishopsgate, which is being developed by Brookfield. 

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