London Office Crane Survey Gearing up for the next phase of construction
GO
Summer 2014 London Office Crane Survey Gearing up for the next phase of construction Report overview
Key findings WHAT? Submarket snapshots A report that measures the volume and impact of office development taking place across central London over the next five years Crane Survey results
Market context
Outlook WHERE? Central London, covering seven key office submarkets: City, Docklands, King’s Cross, Midtown, Paddington, Southbank and West End Development table
WHO? Developers that are building new offices or undertaking significant refurbishments of 10,000 sq ft or more
WHEN? This survey covers the six months to 31st March 2014. All data is correct as at 31st March 2014
HOW? A team of researchers have walked every street in central London to monitor office construction. Our field research is then verified with direct industry links and in-house property experts London Office Crane Survey Gearing up for the next phase of construction Key findings
Key findings
Submarket snapshots
Crane Survey results
Market context
Outlook
Development table
London Office Crane Survey Gearing up for the next phase of construction Key findings
CRANE SURVEY RESULTS Key findings Office construction is down This survey Submarket snapshots 5% over the past six months has recorded to 9.2 million sq ft 15 new starts; Crane Survey results lowest number 45% of the space since 2010 under construction is already let Market context The West End and 2014 will see a Outlook There was just Midtown are the spike in the delivery one new only markets to of new space Development table construction see a rise in but there is a very start in the construction limited pipeline City levels thereafter
MARKET CONTEXT
A rise in tenant Yields remain There has been demand has low as a return to applied demand for rental growth pressure on investment in most the existing stock sub markets supply of Currently the lowest level remains Grade A space high £ of available space in central £ London for six years
OUTLOOK
A rise in demolition Increase in pre-letting Rents expected to rise indicates a new wave activity expected over over the next of construction the next eighteen 2017 five years 2016 is imminent months 2015 LET 1 1 1 BY 2017 may see the next development peak London Office Crane Survey Gearing up for the next phase of construction Submarket snapshots
Key findings
Submarket snapshots
Crane Survey results
Market context
Outlook
Development table
London Office Crane Survey Gearing up for the next phase of construction Submarket snapshots The City
City office development pipeline Key findings Million sq ft 3.5 Submarket snapshots 3.0 2.5 2.0 Crane Survey results 1.5 1.0 Market context 0.5 0.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Outlook Completed u/c available u/c let
Development table Total amount under construction Number of new construction starts Which sector Today Highest is currently Highest taking the 8.2 million sq ft most space? Today (2008) Insurance 4.7 million sq ft 1 20 10 Year Average (2007) Lowest Lowest number of Average size of a scheme 4.2 million sq ft 1.3 million sq ft new starts since 2010. (2010) 10 Year Average Lowest 205,000 sq ft ft Construction is down 8% from 6 months ago and is the first fall in construction for three and 0 Average size of a floor a half years. 6 (2010)
Total amount completed since last survey Total amount of space under construction 17,000 sq ft 380,000 sq ft which has been let or remains available Highest 54% level for 46% Number of cycle spaces let nine years available being built 3,186
across 5 buildings London Office Crane Survey Gearing up for the next phase of construction Submarket snapshots West End
West End office development pipeline Key findings Million sq ft 2.5
Submarket snapshots 2.0
1.5 Crane Survey results 1.0 Market context 0.5 0.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Outlook Completed u/c available u/c let
Development table Total amount under construction Number of new construction starts Which sector Highest Today Highest is currently 3.4 million sq ft taking the Today (2007) most space? 1.6 million sq ft Corporate 13 10 (2011) The ten new starts total Average size of a scheme 10 Year Average 777,000 sq ft - the highest 2.2 million sq ft Lowest 0.7 million sq ft volume of new starts for (2010) three and a half years Lowest 62,000 sq ft 10 Year Average
Construction is up 11% from 6 months ago and is one of the only two submarkets to see a rise in 2 Average size of a floor construction levels. (2009) 8 Total amount completed since last survey Total amount of space under construction 44% of which has been let or remains available 9,500 sq ft 0.5 million sq ft completed space has been let Number of cycle spaces 96% available being built 4% 2,189 let across 11 buildings London Office Crane Survey Gearing up for the next phase of construction Submarket snapshots Docklands
Docklands office development pipeline Key findings Million sq ft 3.5 Submarket snapshots 3.0 2.5 2.0 Crane Survey results 1.5 1.0 Market context 0.5 0.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Outlook Completed u/c available u/c let
Development table Total amount under construction Number of new construction starts Which sector Today Highest is currently Highest taking the most space? Today 7.4 million sq ft Other 0.5 million sq ft (2002) (Medical) 0 10 Year Average Lowest 1 Average size of a scheme 0 million sq ft 0.5 million sq ft (2012) (2011) 10 Year Average 540,000 sq ft Lowest
This is the fifth consecutive survey with the same 0 one building under construction. 1 Average size of a floor (2014)
Total amount completed since last survey Total amount of space under construction which has been let or remains available 30,000 sq ft 0 sq ft across 0 buildings Number of cycle spaces 89% let being built 138 11% available London Office Crane Survey Gearing up for the next phase of construction Submarket snapshots Midtown
Midtown office development pipeline Key findings Million sq ft 1.2 Submarket snapshots 1.0 0.8 Crane Survey results 0.6 0.4 Market context 0.2 0.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Outlook Completed u/c available u/c let
Development table Total amount under construction Number of new construction starts Which sector Today Highest is currently taking the Highest Today 1.3 million sq ft most space? TMT 1.3 million sq ft (2014) 68% of space let 8 3 (2013) 10 Year Average Lowest Average size of a scheme 0.7 million sq ft 0.2 million sq ft (2010) 10 Year Average 87,000 sq ft Lowest
Construction is up 25% from 6 months ago and 0 is at its highest level recorded in a crane survey. 3 Average size of a floor (2010)
Total amount completed since last survey Total amount of space under construction which has been let or remains available 10,000 sq ft 0.16 million sq ft across 3 buildings Number of cycle spaces 31% Highest 69% let for five available being built years. 1,047 London Office Crane Survey Gearing up for the next phase of construction Submarket snapshots Southbank
Southbank office development pipeline Key findings Million sq ft 1.4 Submarket snapshots 1.2 1.0 0.8 Crane Survey results 0.6 0.4 Market context 0.2 0.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Outlook Completed u/c available u/c let
Development table Total amount under construction Number of new construction starts Which sector Today Highest is currently Highest taking the 1.6 million sq ft most space? Today (2014) TMT 0.3 million sq ft 94% of space let 1 10 Year Average Statistics show that we 2 Average size of a scheme 0.9 million sq ft Lowest 0.05 million sq ft have never recorded more (2012) (2010) than 2 starts per survey for this market. 196,000 sq ft Lowest 10 Year Average
Volume of construction is at its lowest for more 0 than 10 years. Average size of a floor (2013) 1 Total amount completed since last survey Total amount of space under construction which has been let or remains available 19,000 sq ft 0.5 million sq ft across 2 buildings Number of cycle spaces 0% 100% being built 77% of the space let available which has completed 430 has been let London Office Crane Survey Gearing up for the next phase of construction Submarket snapshots King’s Cross
King’s Cross office development pipeline Key findings Million sq ft 0.9 0.8 Submarket snapshots 0.7 0.6 0.5 Crane Survey results 0.4 0.3 0.2 Market context 0.1 0.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Outlook Completed u/c available u/c let
Development table Total amount under construction Number of new construction starts Which sector Today Highest is currently taking the Highest Today 0.8 million sq ft most space? TMT 0.7 million sq ft (2013) 0 10 Year Average Lowest This is the second 4 Average size of a scheme 0.1 million sq ft 0 million sq ft consecutive survey with (2011) (2012) no new construction starts Lowest 112,000 sq ft 10 Year Average
Construction is down 8% on six months ago, but remains significantly above the ten year average 0 Average size of a floor of 0.1 million sq ft. 2 (2014)
Total amount completed since last survey Total amount of space under construction which has been let or remains available 13,000 sq ft 0.7 million sq ft This submarket is proving to be one of across 2 buildings the most diverse for Number of cycle spaces 91% attracting different being built 100% of the let occupier types space which has 412 completed has 9% been let available London Office Crane Survey Gearing up for the next phase of construction Crane Survey results
Key findings
Submarket snapshots
Crane Survey results
Market context
Outlook
Development table
London Office Crane Survey Gearing up for the next phase of construction Crane Survey results New activity declines
1. The total volume of office space under Total volume under construction per survey Million sq ft Key findings construction has fallen to 9.2 million sq ft The latest Crane Survey results show that the total 20 Submarket snapshots volume of office space under construction in central 18 London has fallen by 5% compared with six months 16 Crane Survey results ago. Despite the growing strength in the capital’s 14 economy and improving take-up, new space under 12 construction is at its lowest level for one and a half 10 Market context years. Not only is the current level of construction relatively modest, it comes after nine previous surveys 8 Outlook in which we have recorded activity below the long run 6 average of around 10 million sq ft. 4 Development table 2 0
2004 Q1 2005 Q1 2005 Q3 2006 Q1 2007 Q1 2007 Q3 2008 Q1 2008 Q3 2009 Q1 2009 Q3 2010 Q1 2010 Q3 2011 Q1 2011 Q3 2012 Q1 2012 Q3 2013 Q1 2013 Q3 2014 Q1 2002 Q3 2003 Q1 2003 Q3 2004 Q3 2006 Q3
Total volume under construction by submarket Million sq ft
Total 9.2
City 4.7
Midtown West End 1.6 Docklands King’s Cross 1.3 0.7 Southbank 0.5 Paddington 0.3 0 London Office Crane Survey Gearing up for the next phase of construction
The West End and Midtown are the only two Summer 2014 – Office space under construction Key findings submarkets to have witnessed a rise in construction Total sq ft Let sq ft Available sq ft since the last survey. The City, which is typically home Submarket snapshots to half the total level of construction across central City 4,735,000 2,540,000 2,195,000 London, has seen just one new start in this survey Docklands 540,000 483,000 57,000 period. Crane Survey results King’s Cross 717,000 655,000 62,000
Market context Midtown 1,322,000 414,000 914,000 Paddington 0 0 0 Outlook Southbank 270,000 0 270,000 West End 1,629,000 68,000 1,561,000 Development table Total 9,213,000 4,160,000 5,059,000 Change since last survey
Largest available building currently under construction:
Aldgate Largest building currently Tower, under construction:
City 5 Broadgate,City 317,000 sq ft 700,000 sq ft London Office Crane Survey Gearing up for the next phase of construction
2. Volume of completions slows Key findings After a flurry of completions in the West End six 1.6 million sq ft completed months ago it is unsurprising to see a decline in over the past Submarket snapshots the amount of space which has finished this survey. six months across Across central London, 1.6 million sq ft of new space 23 buildings Crane Survey results was completed, one million sq ft less than the previous survey. 23 buildings contributed to the volume of completions but with 45% of this space now let, the Market context amount of available space actively reaching the market is lower than the headline figures suggest. Outlook 45% is already let
Development table
Largest building to have completed in this survey
Sea Containers, Southbank 224,000 sq ft
London Office Crane Survey Gearing up for the next phase of construction
3. The number of new starts falls Volume of new starts per survey Million sq ft Key findings There have been 15 new starts recorded since our last survey, adding 1.3 million sq ft to the development 5.0 Submarket snapshots pipeline. This is the lowest volume to be added in 4.5 a single survey since 2010. New starts have been 4.0 recorded in the City (albeit only one, representing the Crane Survey results 3.5 lowest number of new starts for seven surveys) the West End, Midtown and Southbank. The West End is 3.0 Market context driving new construction in this survey with just over 2.5
two thirds of the new starts located here. In contrast, 2.0 Average Outlook this is the second consecutive survey in which we have 1.5 not seen any new development starts in King’s Cross, 1.0 Development table Paddington or Docklands. 0.5
0.0
2004 Q1 2005 Q1 2005 Q3 2006 Q1 2007 Q1 2007 Q3 2008 Q1 2008 Q3 2009 Q1 2009 Q3 2010 Q1 2010 Q3 2011 Q1 2011 Q3 2012 Q1 2012 Q3 2013 Q1 2013 Q3 2014 Q1 2002 Q3 2003 Q1 2003 Q3 2004 Q3 2006 Q3
Both the number and the total volume of new starts
have fallen below the 12 year average.
London Office Crane Survey Gearing up for the next phase of construction
4. This is the fourth consecutive survey to record Total amount under construction by available and let Million sq ft Key findings a decline in available space under construction Of the space that is currently under construction, 45% 18 Submarket snapshots (4.1 million sq ft) has been let prior to completion, a 16 ratio that has been increasing for over two years, and 14 Crane Survey results is a clear positive for those developers already building space, as well as those gearing up to start construction. 12 10 Market context 8 Outlook 6 4 Highest Development table 64% 2 Percentage (2004) 0
Average
of space 2002 Q3 2003 Q1 2003 Q3 2004 Q1 2004 Q3 2005 Q1 2005 Q3 2006 Q1 2006 Q3 2007 Q1 2007 Q3 2008 Q1 2008 Q3 2009 Q1 2009 Q3 2010 Q1 2010 Q3 2011 Q1 2011 Q3 2012 Q1 2012 Q3 2013 Q1 2013 Q3 2014 Q1 36% Available Let which has Lowest been let 0.3% (2011) whilst under Today construction 45%
London Office Crane Survey Gearing up for the next phase of construction
5. The TMT sector continues to drive demand for Percentage of space let by sector Key findings new space
TMT occupiers continue to dominate the share of the TMT 37% Submarket snapshots pre-completion leasing market. However, the financial Financial and insurance sector remain significant acquirers Insurance of new space too, with some notable pre-lets in Other Crane Survey results 24% recent months. Professional Legal Market context 6. Popularity of emerging submarkets continues Government 20% Corporate to grow 6% Outlook Whilst the ‘footloose’ approach of TMT businesses has 4% been noted in recent surveys, reducing availability and 3%3%3% Development table rising rents are now forcing some occupiers from other sectors to move from their traditional locations as well. Where have occupiers that have taken space in this survey moved from and to? This is being reflected in a rise in popularity of submarkets such as King’s Cross and the Southbank. 11% 20% 25% This is evident when analysing where occupiers who King’s Midtown have taken space on schemes featured in this survey Cross have moved from, and to. King’s Cross has seen 89% 55% the greatest proportion of new occupiers with 89% of space taken by either new entries to London or
from occupiers attracted away from other London 51% 42% submarkets. The City has attracted just 84,000 sq ft of 47% West End Docklands new occupiers, but this masks the 2.5 million sq ft of transactions from occupiers who were already located 58% in the City and elected to stay. 2% 3% 8% 28%
Southbank City
72% Stayed Moved in Moved out 89% London Office Crane Survey Gearing up for the next phase of construction
7. Consolidation is driving take-up of new space Reasons for new lettings Occupiers in this survey Key findings Pressure for efficiency has seen consolidation emerge have moved out of as the greatest reason for new lettings featured in this 2.5 million sq ft, and Submarket snapshots survey. 29% of occupiers moved due to a lease event 39% into 4.5 million sq ft: whilst 6% are new entries from overseas. Consolidation almost double that of their previous lease Crane Survey results Lease event Expansion 8. 2014: Delivery of current construction peaks 29% While the results of the Crane Survey show falling Overflow Market context construction, the development pipeline shows seven New entry million sq ft is scheduled for delivery this year, the 18% Outlook largest amount to be delivered in a single year since 8% 2003. This peak in delivery is driven by a number of 6% Development table developers that initiated schemes at the first signs of the economic recovery in 2011/2012. However, at that stage the economic recovery was not sustained, Central London development pipeline and as a consequence the volume of new starts fell in Million sq ft
subsequent surveys. The result of this is now being felt, 10 with our pipeline showing only a handful of buildings 9 under construction which are scheduled to deliver 8 space in 2015 or 2016. 7 6 5
4
3
2
1
0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Completed Available u/c Let u/c London Office Crane Survey Gearing up for the next phase of construction
Building characteristics Key findings Average size of a building
Submarket snapshots Developers are going some way to re-balancing 123,000 sq ft Crane Survey results the dearth of Average size of a floor Market context
Outlook 100,000 sq ft + 12,500 sq ft Development table buildings, with 16 scheduled Average 9 to complete over the next number of floors three years. being built
London Office Crane Survey Gearing up for the next phase of construction
Bike spaces (provided across all schemes currently Key findings Latest data from the Census showed that cycling to bike under construction and those which work within London has increased by 155% from 2001 7,402 spaces have completed over the last six months) Submarket snapshots to 2011 and these numbers are expected to continue rising. There are currently no planning requirements to Crane Survey results provide bike spaces. However, the London Plan suggests boroughs adopt a ratio of one bike space per 2,500 sq ft of office space. The Mayor of London’s own strategy is Market context to adopt one bike space per 1,600 sq ft. Analysing the schemes which feature in this Crane Survey shows 1:2,500 sq ft 1:1,600 sq ft 1:1,462 sq ft Outlook there are 7,402 bike spaces being provided. This is a Suggested by Suggested by Ratio confirmed by ratio of one bike space per 1,462 sq ft (an average of borough Mayor of London Crane Survey Development table 84 bike spaces per scheme), exceeding both the London Plan and the Mayor of London’s target. Nevertheless, questions remain as to whether current provision is Developers are seeking to meeting occupier needs, with reports of demand for achieve a BREEAM rating bike spaces in some of the new schemes outstripping for supply. of buildings in this survey BREEAM 83% 83% of all buildings in this survey are seeking to achieve a BREEAM rating which will certify the sustainability of a building. Half of all the schemes are seeking to achieve a BREEAM rating of Excellent with three buildings aiming to achieve Outstanding – the highest award available.
The results of this survey shows that BREEAM continues to be a genuine badge of credibility for new offices, driven by a combination of planning policy and the expectations of investors and occupiers. However, despite the popularity of BREEAM, other certifications are gaining acceptance. Notably, LEED, a broadly comparable 7,402 bike spaces environmental rating system of US provenance, and with significant global traction (30 billion sq ft now certified.)
1:2,500 sq ft 1:1,462 sq ft Suggested by Ratio confirmed by borough Crane Survey London Office Crane Survey Gearing up for the next phase of construction
Who is building? Top 10 developers by office space under construction across Key findings It is not surprising that ranking developers by volume of central London space under construction shows a list dominated by those Developer Rank building tower spaces in the City. The top ten consists Submarket snapshots Land Securities 1 predominantly of real estate investors, which account for 32% of all space under construction, and REITs with Crane Survey results Canary Wharf Group 2 29%. Property companies make up a further 33%, which British Land 3 is partly a reflection of the type of developers that have Market context been able to access funding over the past few years. Stanhope 4 GIC 5 Outlook Bloomberg 6 Development table Aldgate Developments 7 King’s Cross Central Limited Partnership 8 Kato Kagatu & Co Ltd 9
Oxford Properties 10
Total volume of space under construction by developer type
32%
Real estate investor REIT 29% Property company Owner occupier Private equity 33%
2% 4%
AW t REDR c Corrup Graphi London Office Crane Survey Gearing up for the next phase of construction
Who are the contractors? Top 10 contractors by amount of space Million sq ft Key findings The London development market contributes an average of £1.7 billion per year to the economy and 11% of the 3.0 Submarket snapshots total value of the construction market (excluding civil projects) according to official statistics. This is a clear 2.5 illustration of the importance of the London market to Crane Survey results 2.0 UK contractors.
1.5 Market context The latest data from this survey highlights the
dominance of the large contractors. The top five account 1.0 Outlook for 74% of the current office space under construction by volume. Most of this activity comprises new-build 0.5 Development table schemes; however there are a number of significant refurbishments across central London which are offering 0.0 Mace Canary Sir Robert Skanska BAM Laing Balfour Brookfield ISG Galliford smaller contractors a share of the market. Wharf McAlpine O'Rourke Beatty Multiplex Try Contractors
2012 2013 2014
Mace has been the
top contractor for
the last three years
London Office Crane Survey Gearing up for the next phase of construction Market context
Key findings
Submarket snapshots
Crane Survey results
Market context
Outlook
Development table
London Office Crane Survey Gearing up for the next phase of construction Market context Factors impacting the central London office market
1. Economic uncertainty falls % of CFOs who rate the level of external financial and economic uncertainty facing their business as above normal, high or very high Key findings Economic conditions continue to improve: Deloitte’s latest CFO Survey highlights that risk appetite amongst 95% Submarket snapshots the Chief Financial Officers of the UK’s largest firms (many of them headquartered in London) rose to a six- 85% and-a-half year high in the first quarter of 2014. With Crane Survey results 75% economic uncertainty reducing, 71% of CFOs say now is a good time to take risk on to their balance sheets, 65% Market context which is expected to result in an increase in corporate spending and expansionary behaviour. 55% Outlook Specifically, CFOs have indicated that intentions to hire 45% 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 Development table more staff are greater than at any time since 2010. Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Source: CFO Survey Q1 2014
Net % of CFOs who expect UK corporates hiring, capital expenditure and discretionary spending to increase over the next 12 months Hiring 80% 60% Capital expenditure
ease 40%
Incr 20% Discretionary spending 0%
-20% -40%
ease -60%
Decr -80% -100% 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Source: CFO Survey Q1 2014 London Office Crane Survey Gearing up for the next phase of construction
2. London’s economic recovery is reflected in Central London take-up levels by grade Million sq ft Key findings strong occupational demand for office space 25 Take-up in 2013 climbed to the highest level since the Submarket snapshots downturn and strong appetite for Grade A space has 14 continued during 2014, applying further pressure on 20 the existing supply. 14 Crane Survey results 11 15 9 11 11 3. Technology, media and telecoms (TMT) 7 Market context 7 9 7 businesses continue to drive demand 7 5 10 The TMT sector has seen its share of London take-up 8 4 6 5 8 9 7 Outlook rise over the past five years from 8% in 2007 to 34% 6 4 7 7 7 5 6 6 in 2013. There are two main drivers behind the sector’s 5 5 5 6 5 5 5 5 3 Development table growing demand for space: ‘pure’ TMT companies 3 3 3 2 2 with a desire to expand; and the technology and digital 0 offshoots of large corporates, which are increasingly locating away from parent sites in areas better known 1994 1995 1996 1997 1998 1999 2000 2001 2002 200 3 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
for TMT, partly to help attract the required talent. Grade A Secondhand Despite TMT’s growing share of central London take-up, the finance and professional sector continues to play an important role, particularly in the City. Percentage share of space taken by occupier sector
8% 12% 15% TMT 14% 34% Professional 27% Other 25% 16% Legal 2007 2010 2013 Insurance 8% 7% 7% Government 2% 3% 6% 3% Financial 4% 26% 32% 1% Corporate 18% 10% 7% 14% London Office Crane Survey Gearing up for the next phase of construction
4. Central London availability has dropped to Central London availability levels by grade Million sq ft Key findings its lowest point for six years The total volume of office space available (Grade A and 35 second-hand) has fallen 38% since the peak in supply Submarket snapshots 30 in 2009, reflecting the recent increase in take-up and four years of low delivery of new office space. 25 38% fall Crane Survey results (2009 to Q1 2014) Looking specifically at Grade A availability, some 20 Market context London submarkets are now recording the lowest level 15 of availability for many years, and, based on average Outlook take-up levels, there is less than one year of available 10 Grade A supply across central London as a whole. 5 Development table This is only the third time in the last 20 years that 5 availability levels across central London have been 0 this low. 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 As a consequence there is an acute supply shortage for (Q1) certain unit sizes and locations. Analysis of our London Grade A Secondhand database shows that there are currently just ten Grade A buildings in central London which are available to let in their entirety, and only five which can offer an occupier 100,000 sq ft of space or more, thus severely limiting occupier choice. The largest building which can offer
10 0,000 sq ft+ of available space, The Shard, Southbank London Office Crane Survey Gearing up for the next phase of construction
5. Rising take-up is driving a return to Prime rental growth Q4 2009 – Q1 2014 Key findings rental growth 57% Central London rents bottomed out in 2009 and have Submarket snapshots been slow to recover. However, rents have been rising and four out of the five main submarkets are 35% 45% Crane Survey results now recording at least 30% higher rents than in 2009. The West End is seeing particularly strong growth, 32% increasing 57% since the end of 2009. Conversely, Market context Docklands has fared the worst, with prime rental levels showing no movement. Outlook no movement
City Docklands Midtown Southbank West End Development table £57.50 £32.50 £60.00 £47.50 £110.00 Current Current Current Current Current prime rent prime rent prime rent prime rent prime rent
We forecast rents to
increase in the prime
areas of London over the next
12 months.
London Office Crane Survey Gearing up for the next phase of construction
6. 2013 saw a record level of £21 billion invested Central London Breakdown of overseas investors Key findings into the central London office market – 16% Investment in 2013 1% above the previous high in 2007. 13% 3% 7% 11% 2% Submarket snapshots The investment market has seen a marked UK property 2% Far Eastern 9% improvement over the last two years. During 2013 companies Middle 40% Improving occupier sentiment and stronger rental UK institutions Eastern Crane Survey results Occupiers European 11% prospects played a part in the high demand from UK Unknown German property companies and institutions, yet their share of Market context Private 69% USA investment activity in London was significantly lower individuals Other 12% than at the national level. Part of this was due to the Overseas Irish Outlook fierce competition for London assets emanating from 20% overseas: foreign investors accounted for 69% of Development table purchases in central London offices during 2013. Of these, 60% came from the Middle East or Far East.
Overseas demand has continued in 2014, accounting
for over half of central London office transactions in the first quarter. We expect that new entrants to the investment market will continue to emerge from all around the world particularly from the Far East, as national pensions and savings institutions seek ways to diversify beyond their domestic markets, and regulations preventing them from investing overseas are gradually relaxed. As a large, liquid and transparent market, London will continue to be a natural first step for investors making initial acquisitions abroad.
London Office Crane Survey Gearing up for the next phase of construction
7. Prime office yields continue to come under Prime yield by submarket Key findings downward pressure Yield % An improving occupier market, coupled with strong 8.0% Submarket snapshots competition for a finite number of suitable investment 7.5% properties (both from overseas and domestic buyers), 7.0% Crane Survey results has resulted in further downward pressure on office 6.5% yields. Those in the City and West End have fallen by a 6.0% further 25 basis points during the first quarter of 2014 5.5% Market context and are now close to historic lows. Competition from 5.0% overseas investors, some of which have investment 4.5% Outlook criteria that allow them to justify lower yields than 4.0% would be tolerated by UK institutions, for example, 3.5% is maintaining upward pressure on pricing. Some Development table 3.0% domestic investors are struggling to compete at
these levels. Jun 09 Jun 10 Jun 11 Jun 12 Jun 13 Sep 09 Sep 10 Sep 11 Sep 12 Sep 13 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 City Docklands Midtown Southbank West End For developers, the fall in yields only serves to enhance potential returns from delivering new buildings. However, few expect significant further falls in yield levels and therefore attention is increasingly leaning to prospects of rental growth.
London Office Crane Survey Gearing up for the next phase of construction Outlook
Key findings
Submarket snapshots
Crane Survey results
Market context
Outlook
Development table
London Office Crane Survey Gearing up for the next phase of construction Outlook The next five years
The longer term outlook suggests sustained demand for Projection of London working population in 2020 (‘000s) Key findings London’s office space. 5,400 5,350 Submarket snapshots 1. A rise in London jobs will create more office 5,300 demand 5,250 5,200 Crane Survey results Research that forms part of our UK Futures Programme, forecasts a minimum increase of 300,000 London jobs 5,150 5,100 by 2020, reflecting the projected growth in London’s 5,050 Market context population and growing confidence amongst large 5,000 businesses. This is likely to be a clear driver of increased 4,950 Outlook office demand. As a result, London could require an 4,900 additional 4.6 million sq ft of office space per year 2012 2013 2014 2015 2016 2017 2018 2019 2020 Development table (assuming each worker has 108 sq ft of space). Actual Gross value added projection Source: London Futures 2013, Deloitte 2. Attracting and retaining top global companies Further analysis shows that, measured by the locations
of business headquarters, London is by far the leading HQ location of Top 250 companies with global or regional HQ in Europe
commercial centre in Europe: of the top 250 companies Ranking City Country Country % of European HQs with global or regional headquarters in Europe, 40% are located in London, meaning that the capital is well 1 London United Kingdom 40% placed to benefit from a wider European recovery, 2 Paris France 8% creating further demand for space as these businesses 3 Madrid Spain 3% expand. 4 Amsterdam Netherlands 2.5% = Brussels Belgium 2.5%
6 Munich Germany 2%
= Luxembourg Luxembourg 2% = Moscow Russia 2% = Geneva Switzerland 2% 63%
Other (51 European cities) 37% 100% Source: London Futures 2013, Deloitte London Office Crane Survey Gearing up for the next phase of construction
3. Talent will continue to attract businesses London’s global ranking among the high-skill, knowledge-based sub-sectors Key findings A major reason for London’s attractiveness to businesses is that it remains a leading global centre for talent Submarket snapshots and high-skills employment. Deloitte has identified 22 high-skill business sectors, ranging from digital Crane Survey results media, broadcasting and performing arts, through advertising and education to accountancy, management consultancy, banking and insurance. Market context 3 Our research has found that London is the global leader, Outlook in terms of employment numbers, in 12 of these sectors. 2 It is the European leader in nearly all of them. One and a Development table half million Londoners work in these knowledge-based Higher education sectors, compared to 600,000 in Paris, the next largest Motion picture and sound 1 recordings European centre. The result is a virtuous circle, as leading Advertising agencies Securities businesses are attracted to talent, and in turn talent is Radio and television broadcasting Adult and other education Hedge funds attracted to leading businesses. Cable and subscription Culture programming Retail and investment banking Legal services Management, scientific and technical consulting Accounting, tax and payroll Architectural and engineering Insurance Publishing (except Internet) Digital media Fund management Telecommunications Primary and secondary education
Source: London Futures 2013, Deloitte
London Office Crane Survey Gearing up for the next phase of construction
Through discussions with our sector experts we have Growth prospects by sector and London’s global position Key findings identified that the TMT and life sciences sectors will see the fastest growth over the period to 2020. However, High Submarket snapshots financial services, insurance and business & professional services will continue to account for a large share of the Crane Survey results employment market. As a result, demand for office space over the next few years will be driven by a combination
owth Medium
of all of these sectors, and this will be a consideration for Gr Market context developers when working on design and specification.
Outlook Low/decline 0 0.5 1.0 1.5 2.0 2.5 Development table Following Leadership London relative to other leading cities
Life Sciences Number of employees Consumer Business Business & professional services Financial Services Culture Education Technology, Media & Telecommunications
Source: London Futures, 2013 Deloitte
London Office Crane Survey Gearing up for the next phase of construction
4. Slowdown in construction will not last for long It is taking an average of Key findings We believe that there are strong reasons to be confident about long term occupational demand in Submarket snapshots London. As our development pipeline shows, in the 9 months short term at least, current construction means that for a scheme to achieve planning Crane Survey results there may not be enough new office supply to satisfy this demand. However, there are a number of signs that permission more development is on its way. Market context One reason is that the availability of finance for speculative Outlook office development in London is beginning to improve. A variety of different financial methods are now being Development table seen, including joint ventures and forward funding agreements. The latter can be a favourable option for institutions seeking a way to source prime stock, in what
is currently a very competitive marketplace. The upshot is that this gradual improvement in the ability to finance central London office schemes will broaden the range of developers able to kick-start projects.
A second reason is that our development database, which monitors schemes from application stage to completion, has identified a number of sites at which development has not yet started, and are therefore not eligible to include in the Crane Survey, but will have an impact on the future pipeline.
Our research suggests that across all of the submarkets featured there has been 3.2 million sq ft of office space which has gained planning permission over the last six months, with the average time taken to achieve planning permission being nine months. London Office Crane Survey Gearing up for the next phase of construction
Additionally monitored and closer to impacting Key findings the current pipeline is the level of demolition works underway across central London. There is Submarket snapshots approximately 4.5 million sq ft currently undergoing demolition or major strip out works. Crane Survey results The City market demonstrates why this understanding is important. There has been just one new start since Market context our last survey, suggesting a slowing pace of activity. There is approximately 4.5 million sq ft However, there is over 3 million sq ft of demolition currently undergoing demolition Outlook taking place and we anticipate a high proportion of or major strip out works. these sites will see construction start later this year. Development table Equivalent to: The volume of demolition currently being recorded is a clear sign that we are beginning to see a new phase of Shards the construction cycle. 7.6
London Office Crane Survey Gearing up for the next phase of construction
5. The next development cycle accelerates Central London development pipeline forecast Million sq ft Key findings from 2016 Taking our long term analysis a step further, our Crane 15 Submarket snapshots Survey Plus development tool analyses all schemes across central London that we believe have the Crane Survey results potential to be built within the next five years and will therefore impact the future pipeline. 10
Market context Factoring in current demolition levels and schemes which we believe have the potential to complete Outlook (whether on a pre-let or a speculative basis), 2017 has 5 the potential to be the year in which construction levels Development table across central London peak. This is taking into account an ‘earliest’ completion date scenario. However, our 0 experience suggests that inevitably some buildings take slightly longer to complete, therefore we could foresee 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 a slightly lower delivery into 2016 and 2017 than Completed Available U/C Let U/C Proposed (available) Pre-let predicted here, which would push the peak delivery into 2018.
Regardless of a possible shift in the peak year of completion, the future cycle will deliver at around the long run Grade A take-up level. We therefore believe that the pipeline of schemes is manageable particularly when taking into account our view of rising potential demand over the next five years. Despite the recovery, the projected development levels are a far cry from the heady days in the early 90s when delivery of space was nearly 15 million sq ft at its peak. London Office Crane Survey Gearing up for the next phase of construction
Central London development pipeline forecast 6. Increase in pre-letting activity expected over MillionMillion sqsq ftft No. of pre-lets Key findings the next eighteen months. 35 With little currently in the pipeline and delivery of the 16 30 Submarket snapshots next wave of speculative schemes still a few years 14 away, large occupiers will struggle to satisfy their office 25 12 Crane Survey results requirement. This will drive increasing competition and 10 push up rents. 20 Grade A 8 Market context Our analysis of pre-lets and availability for central 15 London clearly highlights that at times of decreasing 6 10 Outlook availability, in particular that of Grade A space, the 4 Secondhand number of pre-letting occurrences increases. With the 5 2 Development table squeeze on available Grade A space becoming more acute, and demand from larger occupiers growing, it is 0 0 1990 1995 2000 2005 2010 2014 likely that the market will begin to see a higher number of pre-lets. But developers looking for a pre-let strategy Secondhand availability Grade A availability Number of pre-lets (RHS) to underpin development will need to be mindful of the fact that the window of opportunity for pre-letting will be strongest over the next 12-18 months, before the next wave of speculative schemes start to enter the market.
In some circumstances, pre-letting can be an opportunity for occupiers to negotiate a favourable rent. However, in the short term, at least, the scope for rental discounts could be tempered by rising construction costs, which developers may seek to pass on in higher rents, as well as occupiers having to pay a premium in times of tight supply. London Office Crane Survey Gearing up for the next phase of construction
7. Rents expected to increase over the next Key findings five years Rental growth Availability is currently running at historic lows, and of around Submarket snapshots there are just 15 new starts recorded this survey. per annum over Combine this with a growing level of demand for the next five years Crane Survey results office space and a short construction pipeline; it is not surprising that we are expecting to see rents increasing is forecast for both over the next few years. Average growth of around the City and West End Market context 4% per annum is forecast for both the City and West 4% submarkets End submarkets with a substantial upswing over the Outlook next 18 months. In fact we forecast rents to rise in all submarkets across central London for prime Development table Grade A space.
This increase in rents, driven by the demand supply imbalance, could potentially reach its peak by 2017.
The number of schemes which are gearing up to start over the next 12 months will begin to feed into the development pipeline which will increase choice for occupiers and reduce competition.
8. Significant rent review increases are also forecast After several years in which rent reviews on central London offices have produced nil or only token uplifts, with rental growth expected, this position is set to change. Significant increases are forecast and these will be sustained for the next two to three years before declining to produce lower levels of uplift as the cycle starts to repeat itself. Some areas of the West End such as North of Oxford Street and Soho could expect to see increases in rents of over 50% whilst just one submarket, Docklands, is predicted to produce no increases over the next five years. London Office Crane Survey Gearing up for the next phase of construction Development table
Key findings
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London Office Crane Survey Gearing up for the next phase of construction Development table
Post Completion Total space Space Key findings No. Scheme code Developer Tenant date sq ft available sq ft Paddington – Under Construction Total 0 0 Submarket snapshots Paddington – Completed Total 0 0 West End Under Construction 1 8 St James Square SW1 Green Property Q2 2014 62,000 62,000 Crane Survey results 2 Walmar House, 288-300 Regent Street W1 Great Portland Estates Q2 2014 54,000 54,000 3 1-2 Stephen Street (Phase 2) W1 Derwent London Q2 2014 84,000 84,000 4 1 Fitzroy Place W1 Exemplar / Aviva / Kaupthing Bank Q3 2014 140,000 140,000 Market context 5 2 Fitzroy Place W1 Exemplar / Aviva / Kaupthing Bank Q3 2014 80,000 80,000 6 20 Grosvenor Street W1 Grosvenor Estate Q3 2014 37,000 37,000 7 1 Regent Street SW1 The Crown Estate Q3 2014 21,000 21,000 Outlook 8 82 Baker Street W1 Lazari Investments Publicis Groupe Q3 2014 73,000 10,000 9 Ampersand, 180 Wardour Street W1 Resolution Property /Peterson Group Q4 2014 64,000 64,000 10 24 Savile Row W1 Terrace Hill/Aerium DSQUARED2 Q4 2014 16,000 11,000 Development table 11 Carnaby Court 2, 22-25 Kingly Street W1 Shaftesbury Carnaby Q4 2014 10,000 10,000 12 Zig Zag Building, Victoria Street SW1 Land Securities Q1 2015 188,000 188,000 13 127 Sloane Street SW1 Cadogan Estate Q1 2015 71,000 71,000 14 20 Golden Square W1 Crosstree Real Estate Q1 2015 30,000 30,000 15 55 St James's Street SW1 Lothbury Investment Managers Q1 2015 23,000 23,000 16 11 Soho Street W1 Dukelease Properties/British Airways Q1 2015 17,000 17,000 Pension Trust 17 69 Grosvenor Street W1 Grosvenor Estate Q2 2015 15,000 15,000 18 Quadrant 2 South, Air Street W1 The Crown Estate / NBIM Q2 2015 47,000 47,000 19 33 Grosvenor Street W1 Grosvenor Estate Q2 2015 13,000 13,000 20 21 Glasshouse Street W1 The Crown Estate / NBIM Q2 2015 26,000 26,000 21 W5 South, New Burlington Place W1 The Crown Estate / NBIM / Exemplar Q4 2015 78,000 78,000 22 Nova North SW1 Land Securities Q2 2016 184,000 184,000 23 Nova South SW1 Land Securities Q2 2016 296,000 296,000 Total 1,629,000 1,561,000 West End Completed 24 149-151 Oxford Street W1 AXA REIM Q4 2013 10,000 10,000 25 39 Victoria Street SW1 British Land Q4 2013 88,000 88,000 26 Marble Arch House W1 British Land / Portman Estate Q4 2013 60,000 60,000 27 33 Davies Street W1 Grosvenor Estate / Stow Q4 2013 29,000 29,000 28 Charlotte House, 11-14 Windmill W1 Bramblewell Ltd The Mill Q4 2013 29,000 0 Street 29 1-2 Stephen Street (Phase 1) W1 Derwent London BrandOpus LLP Q4 2013 18,000 0 30 5 St James's Square SW1 Exemplar Rio Tinto Q1 2014 15,000 0 31 6 St James's Square SW1 Exemplar Rio Tinto Q1 2014 115,000 0 32 10 New Burlington Street W1 The Crown Estate / NBIM / Exemplar Ares Management Q1 2014 94,000 64,000 33 28-29 Savile Row W1 Allied London Q1 2014 15,000 15,000 34 106 Brompton Road SW1 Cheval Group Bainbridge Partners / MH Luxe Q1 2014 12,000 5,000 Total 485,000 271,000
Red texts indicates a new start London Office Crane Survey Gearing up for the next phase of construction Development table
Post Completion Total space Space Key findings No. Scheme code Developer Tenant date sq ft available sq ft Midtown Under Construction 35 Carmelite House, 50 Victoria EC4 Orion Capital Managers/ Quadrant Hachette UK Q2 2014 135,000 0 Embankment Estates Submarket snapshots 36 10 Bloomsbury Way WC1 London & Regional Properties Q3 2014 155,000 155,000 37 The Halo Building 1 Mabledon Place WC1 Stanhope/AIMCO Q3 2014 80,000 80,000 38 Bush House, Aldwych Quarter WC2 Kato Kagaku & Co Ltd Q3 2014 116,000 116,000 Crane Survey results 39 Strand House, Aldwych Quarter WC2 Kato Kagaku & Co Ltd Q3 2014 85,000 85,000 40 King House, Aldwych Quarter WC2 Kato Kagaku & Co Ltd Q3 2014 58,000 58,000 41 Melbourne House, Aldwych Quarter WC2 Kato Kagaku & Co Ltd Q3 2014 35,000 35,000 Market context 42 Turnmill, 63 Clerkenwell Road EC1 Derwent London Publicis Groupe Q3 2014 58,000 0 43 138 Fetter Lane EC4 CLS Holdings Q3 2014 28,000 28,000 44 81 Chancery Lane WC2 Raingate Ltd Q4 2014 50,000 50,000 Outlook 45 40 Chancery Lane WC2 Derwent London Publicis Groupe Q4 2014 97,000 0 46 77-85 Shaftesbury Avenue WC2 Dolford Property Holdings Q2 2015 47,000 47,000 47 12-14 New Fetter Lane EC1 Great Portland Estates Bird & Bird Q4 2015 118,000 0 Development table 48 1 New Street Square EC4 Land Securities Q3 2016 260,000 260,000 Total 1,322,000 914,000 Midtown Completed 49 101 Euston Road NW1 Romulus Connected Digital Economy Catapult Q4 2013 18,000 0 50 New Fetter Place East & West EC4 Kirkbi AS Real Estate LEGO Q1 2014 93,000 68,000 51 8 Bouverie Street EC4 Tudor Court Ltd Q1 2014 47,000 47,000 Total 158,000 115,000 City Under Construction 52 The Banking Hall, 8-10 Moorgate EC2 Moorgate Property Unit Trust ING Q2 2014 130,000 0 53 Lombard London, (67 Lombard Street) EC3 Viridis Real Estate Q2 2014 87,000 87,000 54 1 Aldermanbury Square EC2 EPIC Ltd Q2 2014 65,000 65,000 55 20 Fenchurch Street EC3 Land Securities/Canary Wharf Markel International, RJ Kiln, Royal Sun Q2 2014 669,000 90,000 Group Alliance, Liberty Mutual Insurance, Liberty Syndicates, Ascot Underwriting, Jane Street Europe, Lancashire, Vanquis, Allied World Assurance, CAN, DWF 56 6 Bevis Marks EC3 AXA REIM/MGPA / CORE Oxford Insurance Brokers Q2 2014 158,000 144,000 57 71 Queen Victoria Street EC4 QV Unit Trust Q2 2014 170,000 170,000 58 Moorgate Exchange, 72 Fore Street EC2 MGPA/CarVal / Quadrant Estates Q2 2014 218,000 218,000 59 5 Cheapside EC2 Amsprop Q3 2014 39,000 39,000 60 Leadenhall Building, 122 Leadenhall EC3 British Land/Oxford Properties Aon, Amlin, Servcorp Q3 2014 574,000 262,000 Street 61 100 Cheapside EC2 Quadrant Estates / Orion Capital Q3 2014 87,000 87,000 Managers/ Cityof London / CarVal 62 125 Wood Street EC2 Orchard Street Investment Q3 2014 65,000 65,000 Management 63 The Steward Building, 27-33 Artillery E1 Henderson Global Investors Q4 2014 49,000 49,000 Lane 64 Aldgate Tower E1 Aldgate Developments Q4 2014 317,000 317,000 65 Alphabeta, 14 Finsbury Square EC2 Resolution Property SEI Investments Q4 2014 210,000 152,000
Red texts indicates a new start London Office Crane Survey Gearing up for the next phase of construction Development table
Post Completion Total space Space Key findings No. Scheme code Developer Tenant date sq ft available sq ft City Under Construction continued 66 70 Mark Lane EC3 Mitsui Fudosan/Stanhope Miller Insurance Services Q4 2014 168,000 84,000 67 Asia House, 31-33 Lime Street EC3 Beltane Asset Management Q4 2014 20,000 20,000 Submarket snapshots 68 5 Broadgate EC2 British Land/GIC UBS Q1 2015 700,000 0 69 1 New Ludgate EC4 Land Securities Q2 2015 153,000 153,000 70 2 New Ludgate EC4 Land Securities Q2 2015 193,000 193,000 Crane Survey results 71 Bloomberg Place EC4 Bloomberg/Stanhope Bloomberg Q1 2016 663,000 0 Total 4,735,000 2,195,000 City Completed Market context 72 One Commercial Street E1 Redrow Q4 2013 97,000 97,000 73 Monument Place, 24 Monument Street EC3 Rockspring Property/Alchemy Q4 2013 75,000 75,000 74 The Worship, 9 Worship Street EC2 Highgate Properties Q4 2013 16,000 16,000 Outlook 75 10 Finsbury Square EC2 Pembroke Real Estate Q1 2014 152,000 152,000 76 85 Gresham Street EC2 City of London Q1 2014 40,000 40,000 Total 380,000 380,000 Development table Southbank Under Construction 77 30 Great Guildford Street SE1 Workspace Q4 2014 50,000 50,000 78 South Bank Tower, Stamford Street SE1 CIT Q4 2015 220,000 220,000 Total 270,000 270,000 Southbank completed 79 Sea Containers, Upper Ground SE1 Archlane Ltd Ogilvy, Puma, WeWork Q1 2014 290,000 0 80 240 Blackfriars Road SE1 Great Portland Estates/ Ropemaker United Business Media, Q1 2014 224,000 94,000 Properties Boodle Hatfield Total 514,000 94,000 King’s Cross Under Construction 81 Five Pancras Square N1C King’s Cross Central Limited Camden Council Q2 2014 150,000 0 Partnership 82 Two Pancras Square N1C King’s Cross Central Limited PRS For Music, Sav Credit Q2 2014 130,000 62,000 Partnership 83 Dance Studio. Regent Quarter N1 P&O Estates (IPOE)/Henderson Macmillan Publishing Group Q2 2014 37,000 0 Global Investors 84 Seven Pancras Square N1C King’s Cross Central Limited The Office Group Q3 2014 30,000 0 Partnership 85 Six Pancras Square N1C AXA REIM/BNP PRE BNP Paribas, Google Q4 2014 370,000 0 Total 717,000 62,000 King’s Cross Completed 86 One Pancras Square N1C King’s Cross Central Limited CSC, The Office Group, Louis Vuitton Q4 2013 55,000 0 Partnership 87 2 Granary Square N1C King’s Cross Central Limited The Art Fund Q4 2013 10,000 0 Partnership Total 65,000 0 Docklands Under Contruction 88 25 Churchill Place E14 Canary Wharf Group European Medicines Agency, EY Q2 2014 540,000 57,000 Total 540,000 57,000 Docklands Completed 0 0 Total 0 0
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A M R E A IG AR A 69 70 D T W E O A H T
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R E N T T E T BURY R Time period: October 2013 – March 2014
T GROSVENOR STREE A D H R 2 N T T E E 4 48 LO B 72 L T 4 ET HYDE PARK E G A B E
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S T T H H IL 3R200 T A L E E I C S E LL T B R Size minimum: 10,000 sq ft L M KENSINGTON T O I R T H N P T I 77 E Y U E A Z S T D E L E T 46 U E O I E E R A M T T I RM S E E I E N TR R R CU CH T 51 71 A E R 40 E H H D S GARDENS11 V Y E R UNION STREET H 67 R S RE R E W S O A L D C T T I O ROAD T D C O N XF ST A 4 F QUE T A S S N L TO A E O G A 38 41 L EN STREETU N H VICTORI C E C N R L N A C O A E 53 H R V E I O FE HU G R W H N NC D C G I A 39 V T 57 D I N S S E R Y K A T 0 ST JAMES'S B H E J 4 R GREEN PARK R T A A A O C D C A T S SC E Y RE M U 15 O O H P L R 55 L T 3 R O A A R A Y D B 35 R G S E S 14 L N H I A E PARK A Construction type: New build construction or G O C RO S IDG O G U T N T O SBR E A R T T L R E 21 IGH O A R T KN O I R A R NG F G C N TON 66 E W E NSI GORE G R G L O YS ENS 20 KE S R UP E R E E A A INGT 15 A LK 3211 BRPIDEGR THAMES STREET D E B O E 3 O A K ER O R W N H A 4 WA STMINST O I L T E T S E W IGH STREET H S KMEAGN W R B E E A V N A DG DC B S A F A ROYA B IR I
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T P NT RO T A 30 E T R 6 O X E 2 AD L U N G E R RO L RA Download the new London app L H H T 4 WEL D QM S S D
0 ROM T 6 I C S A S E A C RS BLACKFRIARS S B 2 2 15 31A L D O 3 DG D T O M N K L O R 0U N 3 A 0 O HA R L O M B R F T R R A H OL O 2 O L T N B O J A I K MOUNT ST N A E D M 80 W R
1 T E A A L G E L Y S E H M T D G A N TON PL A E A D O To view the London development L N O G R T 78 N K
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T U N 200 T N A D C E D 2 NE B A D S S W Y M T KENSINGTON I B A 0 LA R website visit: O L Y A O D P I 7 2 77 O N T 3 H E
1 W E O D Z D T E B 2 RD K A T O E A O R E R 3 R A 3 T T NE O D IC G M T C RM E I I 2 G E U A L M IN 8 S M R W 1 H 1 E N C 2 I 2 N A 3 H L W A R . R GARDENS Y P A I N R D O I EET E D RS A UT ON STR K NI N O S R O S 8 A A A T R D D R www.newlondondevelopment.com
V ROAD T 0 T B O IE N A A N E O 4 L 3 R A T S O L TO A U E R D A A E Y U B E R D X N
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RID F L S R U D B A 6 L A A 3 T E Y O N With the future of London literally at your fingertips, S E A T U 212 E L R
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H O W I E RIVER THAMES A E A M G the New London App is a must have for investors, V S DCK A E B A DG
IR A A E N R I A R B K SE I D B
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N H TM 2 L
A E D R T C 1 T D G A 12 R A A KENNINGTOND L 2 Y 9 B A S O D N 3 R
A I M I O H 8 E M D R A D F V K I R A G R D S N E B O O R R L C N H D E O property owners, developers or occupiers, within the T G O I G K D K UGT R E R RO M PARK O P T 7 L R S R O W V A U N G B L W R 1A A E A M H T O 2 W L B A 2 W E M A N H E S 3 T 0 A L E D U O E ET A 3 E E A P R R L E B A G A E 3 R R D O A N I AD H R D O T E 2 T N R 34 N R Y A A GE R H A S 2 E D D P E D Y I O E N R E U N E 0 O H E BATTERSEA PARK W ABB L S O D N C R T A S N V R A P R A UK and internationally. There is simply no other tool in T 25 L E AT E LB E O C T S E E E T C E T E U A P S R T W R D R O E C A S E 12 ST B E R M A A O S T B R R IA S L E B S T O E D R O E G N R M T R L TO A G RA the market with the capability to showcase London’s E T LAMBETH A G E E G A C P 3 E B E VI K 20 O N R E TR R IT 3 D D S UnderO construction Complete H A R I G P T A T G H E O V R PALACE R R NT E E E W D B R offer in this way and it is set to revolutionise how the B A R O E O ST A O P 22 23 R O D R L C R A A 13 A M H V T E D
E A R E A D 3 C B 3 E L A E W
C L M 2 R L T A 2 NE industry goes to market. 4 ES A U L W O A 1 S M K D A201 A T A ENT ROA O P X E T AD 6 U N LL RO H H A ROMWE D Q ST 6 C S A C RS A L 3 D London Office Crane Survey data now added. O N L O 0 3 A B HA R O M R R O T B A OL O N A A E ID K R L G T S E H M D G N TON L E D N O G R N K
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IF L A H N C
F L A S R D A 6 L A E U Y 3212 O E N A T
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Under construction Complete Contacts
Research City Anthony Duggan Matthew Elliott Head of Research Partner – City 020 7303 3134 020 7303 3592 [email protected] [email protected]
Author West End Ann Ibrahim Stephen Peers Research Manager Partner – West End 020 7303 3200 020 7303 3260 [email protected] [email protected]
www.deloitte.co.uk/cranesurvey
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