London Office Construction on the Rise
Posted on: 19/05/2015

The most recent London Office Crane Survey by Deloitte Real Estate has shown that office construction within London has expanded by more than 24% over the past six months.

Within this period the survey recorded a total of 31 new office construction projects starting, contributing 4.4 million sq ft into the total 9.5 million sq ft currently in development within the City.

Anthony Duggan, head of real estate strategy at Deloitte has suggested that this increase reflects “the start of the supply response the market has been expecting”, following the period of decline in the wake of major projects such as the Walkie Talkie and Cheesegrater.

He continued however, “this increase in activity will not come in time to alter the very tight supply dynamics the office market is currently experience. We expect further rises in rents and more pre-let deals on schemes under construction as tenants compete for the limited amount of available space.

“Looking further ahead, we expect the development pipeline to continue to increase as developer confidence translates to more active construction sites across London.”

This is positive news for the construction industry within London, with many firms struggling to gain big contracts during the decline of office builds.

Steve Johns, head of City leasing at Deloitte Real Estate, said: “Developer sentiment is continuing to improve and this is good news for London’s diverse occupier base.

“The increase in new starts is the second highest we’ve recorded in 20 years. Nevertheless, a third of this space has already found tenants, leaving 22 of the new starts as speculative development schemes.

“There is no need to sound the alarm bells just yet as the 9.5m sq ft development pipeline is only slightly above the average level of activity recorded in the past 10 years. Of this, 37% is already let.”

For more news regarding the London building sector, click here to follow us on twitter.

Vacancies By Email

Get There First With Vacancies By Email

Get specific job types, tailored to your requirements, sent straight to your inbox as soon as they are available. Register Now »

Latest Building Services Jobs

Senior M&E Project Manager Permanent | London, London, England | Negotiable

Excellent opportunity for a Senior M&E Project Manager to join a large engineering business on a permanent basis in London.
Read More »

Senior Electrical Engineer Permanent | Bristol, Bristol, England | Negotiable

We are currently seeking a Senior Electrical Engineer to join an international multi-disciplinary consultancy on a permanent basis in Bristol.
Read More »

Senior Mechanical Engineer Permanent | Bristol, Bristol, England | Negotiable

New opportunity for a Senior Mechanical Engineer to join a leading multi-disciplinary consultancy on a permanent basis in Bristol.
Read More »

Fire Design Engineer Contract | London, London, England | £42.00 Per Hour

A fantastic opportunity for a Fire Design Engineer to join a global multi-disciplinary engineering consultancy for an initial 3 month contract in Central London.
Read More »

Revit MEP Technician Contract | Manchester, Greater Manchester, England | Negotiable

We are currently seeking a Revit MEP Technician to join a leading multidisciplinary engineering consultancy for an initial 6 month contract in Manchester.
Read More »