Metropolis London Skyline Survey

Metropolis has walked the streets of central London to compile its twice yearly skyline survey into the state of office development in the capital in 2015. The full report is available to clients, but the main conclusions were:

  • Office construction is on an upward path with 74 office schemes under construction in central London (72 a year ago) totaling an increased 9.5m sq ft (8m sq ft in October 2014).
  • In the last six months there have been 32 new office scheme starts in central London, totaling 4.1m sq ft
  • The proportion of refurbishments in the office construction market in central London has slipped to a 25:75 split by floorspace ratio of refurbishments:new-build.
  • The City dominates construction with 4m sq ft of new office space in schemes underway.
  • Work has started on 14 new West End schemes in the last six months, as part of a modest rise in construction activity in the West End to 34 schemes under construction.
  • Some 3m sq ft of the 9.5m sq ft office space under construction has already been pre-let.
  • More than 30 future schemes are currently at site preparation stage with nearly 5m sq ft of additional office space due to go under construction in the next 6 months.
  • Just over 3m sq ft of offices was completed in central London over the last six months, however a large proportion of the space was let either prior to completion or just after.
  • In total, less than 1m sq ft of offices are still available in the 27 London schemes and 3m sq ft of offices completed in Q4 2014 and Q1 2015. Some 32 different tenants have already signed up for space.
  • There are currently 1.6m sq ft of offices due for completion in Q2 and Q3 2015, of which only 400,000 sq ft has so far been pre-let.
  • Total office development underway in central London should break through the 10m sq ft ceiling in summer 2015.
  • Drops in availability are forecast to trigger a new wave of fast-track refurbishments.
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