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London construction starts on 2.5 million sq ft of office development in Q1

London construction starts on 2.5 million sq ft of office development in Q1
26th April 2019

London construction starts on 2.5 million sq ft of office development in Q1

Construction has started on 2.5 million sq ft of office development in central London since the beginning of 2019, including large new projects such as 6-8 Bishopsgate, Ropemaker Place and One Portsoken Street.

Indeed, the development pipeline in the City has increased significantly since the end of Q4 2018, when just 2.6 million sq ft of office space over 100,000 sq ft was set for completion 2020 (45% of which was pre-let). This figure has risen to 4.8 million sq ft for Q1 (just 27% of which is pre-let).

Head of London agency and investment at Avison Young, Patrick O’Keeffe, says: “We are currently seeing a market where the 10% of the larger development stock is not being replaced, resulting in a lack of choice for larger tenants. Developers are increasingly waking up to the opportunity of refurbishment, but with lots of uncertainty around pricing… The development starts in the City for Q1 2019 is indication of the confidence developers and occupiers continue to show in London.”

This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.

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