London Office Crane Survey Growing Confidence

London Office Crane Survey Growing confidence

Winter 2013 A Deloitte Insight report Market overview

Winter 2013 – Office space under construction

Total U/C (sq ft) Let U/C (sq ft) Available U/C (sq ft)

City 5,134,000 2,086,000 3,048,000

Docklands 540,000 250,000 290,000

King’s Cross 782,000 479,000 303,000

Midtown 1,061,000 155,000 906,000

Paddington 0 0 0

Southbank 731,000 358,000 373,000

West End 1,461,000 47,000 1,414,000

Total 9,709,000 3,375,000 6,334,000

Ofﬁce space under construction

Million sq ft

6.0

5.5

5.0

4.5

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0 City Docklands King’s Cross Midtown Paddington Southbank West End

12 months ago (Winter 2012) 6 months ago (Summer 2013) Today (Winter 2013)

2 This survey records growing confidence from both developers and occupiers.

Development in the central London office market This mirrors current data which shows that more deals continues apace with 28 new schemes starting since our are completing in the London office market and take-up last survey and the highest volume of space completing of Grade A space is now running above long-term for over three years. average levels.

Construction in the City has risen for the sixth Importantly, the market has begun to see the re- consecutive report, and has now reached the highest emergence of demand from larger occupiers. The point for over five years. The Midtown market is also average letting deal at schemes recorded in this survey seeing strong activity, with development up 47%, on the is 83,000 sq ft, more than double that of 12 months back of a rise of 20% in our last report. ago. The growth in occupier demand is also evident when looking at the volume of space which has been Interestingly, despite robust levels of tenant demand, let prior to completion of the development in this the West End has seen construction fall. Activity is down survey: of the 2.6 m sq ft that has finished over the last 36% on just six months ago, due, in part at least, to a six months, only 1 million sq ft (43%) remains vacant. seven year high in scheme completions this year. The These dynamics will continue to fuel the confidence upshot is that construction in the West End has fallen to being shown by investors and spur additional its lowest point in three years. development activity.

These divergent trends, combined with a number of It is our view that the market is entering a period of significant completions over the last six months, mean stronger pre-letting activity, with developers increasingly that the total volume of office space under construction able to attract tenant commitments ahead of a across central London has remained flat. This survey has construction start. Indeed, analysing these latest results recorded 9.7 million sq ft currently being built: a 1% fall and market sentiment, and looking at the number on the results of six months ago. of sites which have all the elements ready to start construction, we expect the number of new projects to Positively for developers, occupational demand for continue to grow over the coming months. office space is improving. The latest Deloitte CFO survey records notably improved sentiment amongst some of the UK’s largest businesses with CFOs now seeing fewer risks in the economy and greater opportunities for expansion, both in terms of capital expenditure and hiring.

Market by numbers

new construction Total number of 28 starts development schemes71

of office Change in construction space under activity on six 9.7m sq ft construction months ago ‑1%

Completed office of space under space in the past 35% construction is let six months totals 2.6m sq ft

Crane Survey London Office Winter 2013 3 The City

A further rise in construction, to the highest level for five years, reflects the growing confidence in the City market.

Construction continues to rise, up 15% over the last six Indeed, over the last six months a growing number of months. With nine new starts totalling 1.3 million sq ft, deals have completed on whole buildings rather than a total development has exceeded 5 million sq ft for the floor-by-floor basis and we predict that Grade A take-up first time since 2009. Activity has picked up from the for 2013 will reach its highest level for three years. It is record low volumes seen in 2010, but still remains some worth noting, however, there remains a much lower level way below the recent peak of 8.2 million sq ft recorded of activity in the smaller size bands as companies without in this survey in 2008. large scale lease events continue to exercise caution.

This increase in construction is a direct result of Despite this, current supply and demand dynamics are improving sentiment regarding the City of London beginning to filter through into rental growth, with office market. Developer confidence has been buoyed August recording the first increase in City prime rents by reducing levels of available Grade A space (now at a (based on an average 10,000 sq ft mid-floor) over five year low, having fallen from 4.0 m sq ft in mid- three years: up 3% to £57.50 per sq ft. The range of 2009 to 1.4 m sq ft today). The consequence of this rents being paid for new buildings continues to vary fall is that supply shortages are beginning to be seen substantially depending on location, specification and in a number of unit sizes and locations. For example, size (including height) but with pressure on these prime our database shows just four completed buildings now rents to rise we expect further increases to follow. being marketed that can accommodate a requirement of 100,000 sq ft or more.

Most importantly, tenant demand is beginning to show real signs of life. Take-up this year has been boosted by a number of large transactions from the legal and insurance sectors, as well as technology and media firms.

Development pipeline

Million sq ft

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Completed Available U/C Let U/C

4 The results of the latest survey show that the reducing The City – volume under construction % levels of completed Grade A supply is prompting greater leasing activity on schemes under construction, reducing the delivery of available space completing in 2014. This, alongside a quickly closing window to deliver new-build schemes in 2015, means it is looking 41% increasingly likely that the City market will experience an increasingly tight volume of supply of larger units 59% over the next 18-24 months. With indications that City tenant demand is improving, in particular driven by those companies with significant lease events, this shortage should drive further rental growth. This in turn will encourage the delivery of new refurbishment Let U/C Available U/C projects into 2015 and new-builds into 2016 and 2017.

The City – number of new starts per Crane Survey

9 9

3 0 2010 Q3 2011 Q1 2011 Q3 2012 Q1 2012 Q3 2013 Q1 2013 Q3

Market by numbers

new construction Total number of 9 starts development schemes23

of office space under Construction activity up 5.1m sq ft construction on six months ago by 15%

Completed office average size space in the past 222k sq ft of a scheme six months totals 647k sq ft

Crane Survey London Office Winter 2013 5 West End

Construction activity drops 36% in this survey as West End completions hit a seven year high.

We have seen 10 new starts this survey, double the Importantly, only a third of the floorspace completed in number recorded six months ago and an addition of this survey is still available. The rest has been snapped 400,000 sq ft to the development pipeline. However, up by a mix of financial, professional and TMT occupiers this has not been enough to offset the large amount of pre-completion. The slowdown in development is space completed this year. 2013 will see 1.5 million sq ft therefore more likely to relate to the lack of sites for of office space delivered into the West End, which is, by office development than oversupply. some margin, the largest amount to be completed since 2005. Of this, the majority (1.2 million sq ft) has finished Another factor lessening the potential for oversupply is over the last six months. As a result, construction has that the focus of new construction activity has shifted fallen by 36% since our last survey. With just 1.5 million away from the recent development hotspots of Victoria sq ft underway, development activity is now at the and North of Oxford Street, with 70% of the new space lowest level since 2010. recorded this survey being built in Mayfair & St James’s. In total, 42% of space under construction in the West This comes at a time when West End Grade A availability End is now concentrated in this market, as opposed to has reached its highest point for seven years. Does this just 23% twelve months ago. development slowdown therefore reflect concerns of oversupply? We do not believe so. Availability data has It appears this shift in the location of activity is not due been boosted by the completion of a few large schemes to a lack of tenant demand for units in Victoria or North in recent quarters and so, while this may temper rental of Oxford Street, which continue to see interest from a growth in some locations, it is not reflective of the range of tenant sectors, but rather the return of demand shortages that are apparent in others. for super-prime space from hedge funds, private equity and wealth management businesses.

Development pipeline

Million sq ft

2.5

2.0

1.5

1.0

0.5

0.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Completed Available U/C Let U/C

6 This has been reflected in the high rents being paid, with The West End – volume under construction % deals in excess of £120 per sq ft recorded for the very best space in Mayfair, and £130 per sq ft in St James’s. 3% The new schemes in this survey cater for this type of smaller volume, high value demand: our analysis shows that the average size of schemes being built in Mayfair is under half the size of schemes under construction in the North of Oxford Street submarket.

The combination of declining construction and strengthening occupier demand will begin to temper 97% the rising availability. Factor in the continued removal of stock for residential conversion and the West End Let U/C Available U/C is positioned for further rental growth, providing additional opportunities for developers to deliver space in an improving landlord’s market. West End – number of new starts per Crane Survey

10 10

8 8

2010 Q3 2011 Q1 2011 Q3 2012 Q1 2012 Q3 2013 Q1 2013 Q3

Market by numbers

new construction Total number of 10 starts development schemes 23 Change in of office construction space under activity on six 1.5m sq ft construction months ago -36%

Completed office average size space in the past 65k sq ft of a scheme six months totals 1.2m sq ft

Crane Survey London Office Winter 2013 7 Midtown

Activity increases further in Midtown.

This latest survey records a 47% rise in Midtown Combining the new starts with the existing space under construction to 1.1 million sq ft. This follows a 20% construction means that one million sq ft is scheduled upturn six months ago: development activity in Midtown for completion before 2015, almost three times the is clearly growing rapidly! There have been eight new average annual volume of Grade A take-up. However, starts this survey, totalling 554,000 sq ft. So why are availability of existing supply is at a six year low, while developers so keen to build here? take-up is running at double its average rate, therefore this amount of space completing looks like good news There are three main reasons: low availability, strong for occupiers with active requirements. Demand is tenant demand and, for the northern part of the market primarily coming from the legal sector, but there have at least, Crossrail. Alongside this longer-term promise also been significant transactions from the ‘footloose’ of greatly improved connectivity, the underlying market media and technology sectors. fundamentals are clearly very appealing for developers at the present time. The rebound in construction recorded in this survey shows that developers have responded to the low levels of space delivered in 2012 and this commitment is expected to continue with a number of developers gearing up to start schemes over the next 12 months.

Market by numbers

new construction Average size of 8 starts a scheme 76 k sq ft of office space under Construction activity is 1.1m sq ft construction up on six months ago 51%

Completed office schemes currently under space in the past 14 development six months totals 206k sq ft

8 Southbank

Early-letting activity continues at pace on the Southbank.

Take-up of office space on the Southbank in 2013 is The survey has recorded one new construction start, already more than double the 10 year average, with the South Bank Tower, which will deliver 217,000 sq ft of buoyant media and technology sectors accounting for new space in 2015 and is, at the moment, the only site two thirds of these deals. scheduled for completion post 2014. With construction activity falling this survey (down 26%) and letting activity The majority of this demand is for new Grade A space: on Grade A space running significantly above average, The Place, London Bridge completed this survey, fully let we expect further interest from developers in this hot to News International; Sea Containers which completes London submarket in Q1 2014 and is already predominantly let to Ogilvy and 240 Blackfriars Road has attracted United Business Media. All are significant media and technology tenants.

Market by numbers

new construction Average size of 1start a scheme 244k sq ft of office Change in space under construction activity 731k sq ft construction on six months ago ‑26%

Completed office schemes currently under space in the past 3 development six months totals 468k sq ft

Crane Survey London Office Winter 2013 9 King’s Cross

Construction levels flat, but appetite from occupiers continues.

After a flurry of new starts six months ago there has been no new development activity since our last survey. Market by numbers: King’s Cross Despite this, King’s Cross continues to advance as an emerging office location. There are seven buildings currently under construction, totalling 782,000 sq ft, new construction with a number of pre-lets in place and new tenants starts agreeing terms on buildings already underway. Indeed, our research shows that less than 40% of this space is 0 available to let.

Since the last survey Google has moved a step closer to starting construction of its new headquarters at Argent’s King’s Cross Central, with Camden Council 782k sq ft granting planning consent in September. Construction is scheduled to start on the 2.4-acre site in early 2014 with of office space under construction completion scheduled for 2016.

decrease in construction 2% volume in six months

7 schemes under construction

10 Other markets

Docklands Canary Wharf Group’s 25 Churchill Place remains under Market by numbers: Docklands construction in Docklands and is scheduled for delivery in early 2014. European Medicines Agency’s pre-let of 250,000 sq ft kicked started this new development, new construction leaving 290,000 sq ft of space available to let. 0 starts Although plans for the site have not been officially announced yet, enabling works are continuing at the Riverbank House development, once earmarked for a £1.5bn office scheme. 540k sq ft of office space under construction

increase in construction volume 0% in six months

1 scheme under construction

Paddington There have been no office construction starts in Market by numbers: Paddington Paddington since the last survey, which saw the completion of Summit House on Praed Street. However, Paddington has featured heavily in the property new construction press over the last six months due to British Land’s starts acquisition of the majority of Paddington Central, the 0 1.2 million sq ft office-led mixed use estate. British Land is now able to develop 4 and 5 Kingdom Street which currently have consent for around 355,000 sq ft of increase in offices. construction volume 0% in six months

0 schemes under construction

0 completed in the last six months

Crane Survey London Office Winter 2013 11 Capital markets

Lending crisis eases but the lack of development sites continues to restrict investment volumes.

Investment demand for central London office stock Despite compelling reasons to develop, however, for remains very healthy, with £12bn of transactions taking those reliant on finance, the environment remains place during the first three quarters of the year. As was significantly more difficult than it was pre-crisis. the case six months ago, much of this activity has been Nevertheless, while permitted loan to cost ratios are from a wide variety of overseas investors, attracted by now lower, and the process of obtaining development a range of factors including the safety and liquidity of finance still difficult, the availability of bank debt is the market, and the scope for capital preservation. In gradually improving. In addition, some developers are addition, recent months have seen the re-emergence utilising other ways to raise finance, either via joint of interest from UK property companies, funds, and ventures, alternative lenders, or through the issue institutions, who have, until now, been largely absent of bonds. from the market. Fundamentally, however, the signs of recovery seen With a significant weight of both overseas and domestic in central London’s occupier market, coupled with capital targeting a limited supply of assets, central continued investor interest, means that capital providers London office yields have begun to approach pre-crisis are gradually becoming comfortable with one of the lows: prime yields in the City currently stand at 4.50% key risk factors in the development process – tenant with West End yields at 3.75%. The relative lack of new demand. This should lower one of the hurdles to raising construction during the past few years has only served finance for further development activity. Consequently, to exacerbate the scarcity of prime stock, adding to the we envisage a continuation of the strong investment downward pressure on yields. demand seen for existing assets, as well as for potential development sites. The combination of strong investor demand, rising capital values, and improving rental prospects has not been lost on developers. Competition for potential development sites is fierce, with the depth of bidders for suitable opportunities highlighting the desire to purchase and redevelop in London.

12 The London Ofﬁce Crane Survey Winter 2013

WHY MEASURE CRANE ACTIVITY? The Deloitte Real Estate Crane Survey measures ofﬁce construction activity in Central London. The results present a picture of the health of not just the commercial property market, but of London as a whole.

HEADLINE RESULTS

AVERAGE SIZE OF SCHEME HIGHEST LEVEL OF 9.7m COMPLETED SPACE IN OF OFFICES

71 FT CITY WEST END SCHEMES UNDER UNDER Q 223K SQ FT 64K SQ FT CONSTRUCTION S CONSTRUCTION 3YEARS

Key office developers (by amount of space Key office developers (by amount of space under construction) under construction and available to let)

1. Land Securities 1. Land Securities

2. Canary Wharf Group 2. Canary Wharf Group

3. British Land 3. Exemplar

4. Stanhope 4. Aldgate Developments

5. King’s Cross Central Limited Partnership 5. Kato Kagaku & Co

6. Blackstone 6. Resolution Property

7. Exemplar 7. British Land

8. Bloomberg 8. CIT

9. Aldgate Development 9. Quadrant Estates

10. Kato Kagaku & Co 10. London & Regional Properties

Ofﬁce space under construction in sq ft

TOTAL 9,709,000

CITY 5,134,000

WEST END MIDTOWN SOUTHBANK 1,461,000 KING’S CROSS DOCKLANDS 1,061,000 782,000 PADDINGTON 731,000 540,000 0 Crane Survey London Office Winter 2013 13

INCREASING LEASING ACTIVITY ON COMPLETED SPACE ©ª ©ª ¦§¨¦ ¦§¨ª ¢£¢¤¢¥ ¢£¢¤¢¥ 72% 44%

¡ 56%

¡ 28%

NUMBER OF CONSTRUCTION STARTS ACROSS CENTRAL LONDON

HIGH TODAY AVERAGE LOW 37 28 19 4 (2007) (2012)

FIVE LARGEST AVAILABLE BUILDINGS UNDER CONSTRUCTION

11&2 NEW LUDGATE 2ALDGATE TOWER 320 FENCHURCH ST 41&2 FITZROY PLACE 525 CHURCHILL PLACE

Leasing activity on space under construction

27% FINANCIAL

21% INSURANCE

38% TMT

9% CORPORATE

4% GOVERNMENT 0.3% CHARITY

With the future of London literally at your ﬁngertips, the New London App is a must have for investors, property owners, developers or occupiers, within the UK and internationally. There is simply no other tool in the DOWNLOAD market with the capability to showcase London’s offer in this way and it is THE NEW LONDON APP set to revolutionise how the industry goes to market. London Ofﬁces Crane Survey data now added. www.deloitterealestate.co.uk/newlondonapp

www.deloitterealestate.co.uk Outlook

2013 has seen a more robust UK recovery than many had expected, and the London economy has been a key driver.

Along with better economic data and stronger business Indeed, signficant leasing success has been recorded sentiment, a mood of greater optimism has fed through on the space which has completed construction in this into higher levels of take-up in central London’s office survey, only a third has come to the market available market. In addition, there has been a continued shift in to let – the remainder was taken by occupiers whilst the source of tenant demand, with technology, media construction was still underway. This is a marked and telecoms businesses and the professional sector increase from twelve months ago, when 72% was being the most active, in place of financial services. available upon completion. With this trend expected to continue, the amount of available space completing in The upshot of the improving occupier market is that, 2014 will reduce further over the next six months. with recent years delivering low volumes of new office space, availability has started to fall. Indeed, some These dynamics are likely to put upward pressure markets, such as Midtown and the City, are now on rents, following a number of years where little experiencing Grade A availability at the lowest level for movement has been seen, albeit some markets over five years. and building types will perform significantly better than others. This expectation of growth, along with These are clearly positive trends for those developers continued appetite from investors for prime stock already building space, as well as those that might be and forecasts promising a further improvement in the about to begin. The latest survey reflects this, with a economy, is likely to entice developers to begin new flurry of new starts recorded, and development volumes schemes in favoured locations over the next 6-12 remaining at a four year high. months, both on a speculative basis and, increasingly, driven by the return of pre-letting activity. The results show that a relatively high proportion of space is scheduled for delivery in 2014. 6.6 million sq ft is currently earmarked to complete, which would be the largest amount in a single year since 2003. However, the impact of this amount of space hitting the market will be tempered by the fact that 2 million sq ft has already been let.

14 The London Ofﬁce Crane Survey Winter 2013

HEADLINE RESULTS

AVERAGE SIZE OF SCHEME HIGHEST LEVEL OF 9.7m COMPLETED SPACE IN OF OFFICES

71 FT CITY WEST END SCHEMES UNDER UNDER Q 223K SQ FT 64K SQ FT CONSTRUCTION S CONSTRUCTION 3YEARS

Ofﬁce space under construction in sq ft

TOTAL 9,709,000

CITY 5,134,000

WEST END MIDTOWN SOUTHBANK 1,461,000 KING’S CROSS DOCKLANDS 1,061,000 782,000 PADDINGTON 731,000 540,000 0

¡ 56%

¡ 28%

NUMBER OF CONSTRUCTION STARTS ACROSS CENTRAL LONDON

HIGH TODAY AVERAGE LOW 37 28 19 4 (2007) (2012)

FIVE LARGEST AVAILABLE BUILDINGS UNDER CONSTRUCTION

Central London development pipeline

Million sq ft

10 9 8 7 6 5 4 3 1&22 NEW LUDGATE ALDGATE TOWER 20 FENCHURCH ST 1&2 FITZROY PLACE 25 CHURCHILL PLACE 11 2 3 4 5 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Completed Available U/C Let U/C

Leasing activity on space under construction

27% FINANCIAL

21% INSURANCE

38% TMT

9% CORPORATE

4% GOVERNMENT

Crane Survey London Office Winter 2013 15 0.3% CHARITY

www.deloitterealestate.co.uk Development table

Post Completion Total space Space No. Scheme code Developer Tenant date sq ft available sq ft Paddington – Under Construction Total 0 0 Paddington – Completed Total 0 0 West End Under Construction 1 39 Victoria Street SW1 British Land Q4 2013 88,000 88,000 2 149‑151 Oxford Street W1 AXA REIM Q4 2013 10,000 10,000 3 Marble Arch House W1 British Land/Portman Estate Q4 2013 60,000 60,000 4 33 Davies Street W1 Grosvenor Estates/Stow Q4 2013 27,000 27,000 5 1‑2 Stephen Street (Phase 1) W1 Derwent London BrandOpus LLP Q4 2013 23,000 5,000 6 Charlotte House, 11‑14 Windmill Street W1 Bramblewell Ltd The Mill Q4 2013 29,000 0 7 5 St James’s Square SW1 Exemplar Q1 2014 15,000 15,000 8 6 St James’s Square SW1 Exemplar Q1 2014 115,000 115,000 9 10 New Burlington Street W1 Exemplar/Crown Estate Q1 2014 97,000 97,000 10 106 Brompton Road SW1 Cheval Group Q1 2014 10,000 10,000 11 Walmar House, 288‑300 Regent Street W1 Great Portland Estates Q1 2014 54,000 54,000 12 11 Soho Street W1 Dukelease Properties/British Q1 2014 17,000 17,000 Airways Pension Trust 13 28‑29 Savile Row W1 Allied London Q1 2014 15,000 15,000 14 1‑2 Stephen Street (Phase 2) W1 Derwent London Q2 2014 63,000 63,000 15 8 St James Square SW1 Green Property Q2 2014 65,000 65,000 16 1 & 2 Fitzroy Place W1 Exemplar/Aviva/Kaupthing Q3 2014 310,000 310,000 Bank 17 18 Grosvenor Street W1 Grosvenor Estates Q3 2014 40,000 40,000 18 Carnaby Court 2, 22‑25 Kingly Street W1 Shaftesbury Carnaby Q3 2014 13,000 13,000 19 69 Grosvenor Street W1 Grosvenor Estates Q4 2014 15,000 15,000 20 Ampersand, 180 Wardour Street W1 Resolution Property Q4 2014 64,000 64,000 21 55 St James’s Street SW1 Lothbury Investment Managers Q1 2015 23,000 23,000 22 Zig Zag Building, Victoria Street SW1 Land Securities Q2 2015 188,000 188,000 23 1 New Burlington Place W1 Exemplar/Crown Estate Q4 2015 120,000 120,000 Total 1,461,000 1,414,000 West End Completed 24 62 Buckingham Gate SW1 Land Securities World Fuel Services, Schlumberger, Rolls Q2 2013 255,000 130,000 Royce 25 17‑23 Bentinck Street W1 Howard de Walden Estates Q2 2013 35,000 35,000 26 10 Portman Square W1 British Land Saudi Aramco, Aspect Capital Q2 2013 114,000 55,000 27 30 Brock Street, Regents Place NW1 British Land Q2 2013 21,000 21,000 28 10 Brock Street, Regent’s Place NW1 British Land Debenhams Plc, Manchester City Ltd, Q2 2013 320,000 25,000 Whitefoord LLP, Facebook, Twitter 29 95 Wigmore Street W1 Great Portland Estates Lane Clark & Peacock, Pyrford International, Q3 2013 99,000 28,000 Bridgepoint Advisers 30 30 Berkeley Square W1 Philips de Pury Philips de Pury Q3 2013 52,000 26,000 31 23 King Street SW1 Standard Life Tamasek Holdings Q3 2013 44,000 36,000 32 76‑88 Wardour Street W1 Walbrook Land/Legal & Q3 2013 33,000 33,000 General 33 1 Eagle Place, 200 Piccadilly SW1 Stanhope/Crown Estate/Hoopp Haymarket Financial, Schulte Roth & Zabel Q3 2013 58,000 36,000 International 34 1 Page Street SW1 Derwent London Burberry Q3 2013 127,000 0 35 33 Maddox Street W1 Joint London Holdings Q3 2013 12,000 12,000 36 8‑10 Hanover Street W1 Morgan Capital Partners Q3 2013 25,000 25,000 Total 1,195,000 462,000 Midtown Under Construction 37 New Fetter Place East & West EC4 Kirkbi AS Real Estate Q4 2013 93,000 93,000 38 101 Euston Road NW1 Romulus Q4 2013 18,000 18,000 39 Tudor Court, 6‑8 Bouverie Street EC4 Tudor Court Ltd Q1 2014 47,000 47,000 40 Carmelite House, 50 Victoria EC4 Orion Capital Managers/ Q2 2014 135,000 135,000 Embankment Quadrant Estates 41 10 Bloomsbury Way WC1 London & Regional Properties Q3 2014 155,000 155,000 42 Turnmill, 63 Clerkenwell Road EC1 Derwent London Publicis Group Q3 2014 58,000 0 43 One Mabledon Place WC1 Stanhope Q3 2014 86,000 86,000 44 Bush House, Aldwych Quarter WC2 Kato Kagaku & Co. Q3 2014 120,000 120,000 45 Strand House, Aldwych Quarter WC2 Kato Kagaku & Co. Q3 2014 85,000 85,000 46 King House, Aldwych Quarter WC2 Kato Kagaku & Co. Q3 2014 55,000 55,000 47 Melbourne House, Aldwych Quarter WC2 Kato Kagaku & Co. Q3 2014 35,000 35,000 48 81 Chancery Lane WC2 Raingate Ltd Q3 2014 49,000 49,000 49 Cliffords Inn, Fetter Lane EC4 CLS Holdings Q3 2014 28,000 28,000 50 40 Chancery Lane WC2 Derwent London Publicis Group Q4 2014 97,000 0 Total 1,061,000 906,000 Midtown Completed 51 Lever Building, 85 Clerkenwell Road EC1 GE Capital Real Estate/ Q2 2013 30,000 30,000 Endurance Land 52 One Southampton Street WC2 Aviva Investors Q2 2013 26,000 26,000 53 10 Bedford Street WC2 LaSalle Investment Q2 2013 32,000 32,000 54 Africa House, 64‑78 Kingsway WC2 Freshwater Q3 2013 118,000 118,000 Total 206,000 206,000 City Under Construction 55 Monument Place, 24 Monument Street EC3 Rockspring Property/Alchemy Q4 2013 75,000 75,000 56 6 Bevis Marks EC3 AXA REIM/MGPA/CORE Q4 2013 158,000 158,000 57 One Commercial Street E1 Redrow Q4 2013 97,000 97,000 58 10 Finsbury Square EC2 Pembroke Real Estate Q4 2013 152,000 152,000 59 The Worship, 9 Worship Street EC2 Highgate Properties Q4 2013 16,000 16,000

16 Post Completion Total space Space No. Scheme code Developer Tenant date sq ft available sq ft 60 71 Queen Victoria Street EC4 QV Unit Trust Q1 2014 170,000 170,000 61 Lombard London, (67 Lombard Street) EC3 Viridis Real Estate Q1 2014 87,000 87,000 62 85 Gresham Street EC2 City of London Q1 2014 40,000 40,000 63 The Banking Hall, 8‑10 Moorgate EC2 Moorgate Property Unit Trust Q2 2014 138,000 138,000 64 20 Fenchurch Street EC3 Land Securities/Canary Wharf Markel International, RJ Kiln, Royal Sun Q2 2014 670,000 317,000 Group Alliance, Liberty Mutual Insurance, Liberty Syndicates Insurance, Ascot Underwriting 65 Moorgate Exchange, 72 Fore Street EC2 MGPA/CarVal/Quadrant Estates Q2 2014 218,000 218,000 66 1 Aldermanbury Square EC2 EPIC Ltd Q2 2014 65,000 65,000 67 5 Cheapside EC2 Amsprop Q2 2014 39,000 39,000 68 Leadenhall Building, 122 Leadenhall EC3 British Land/Oxford Properties Aon, Amlin Q3 2014 574,000 288,000 Street 69 100 Cheapside EC2 Quadrant Estates/Orion Capital Q3 2014 87,000 87,000 Managers/City of London/ CarVal Investors 70 Bishops Court, 27‑33 Artillery Lane E1 Henderson Global Investors Q3 2014 49,000 49,000 71 125 Wood Street EC2 Orchard Street Investment Q3 2014 65,000 65,000 Management 72 Alphabeta, 14 Finsbury Square EC2 Resolution Property Q3 2014 210,000 210,000 73 Aldgate Tower E1 Aldgate Developments Q4 2014 318,000 318,000 74 70 Mark Lane EC3 Mitsui Fudosan/Stanhope Miller Insurance Services Q4 2014 168,000 84,000 75 5 Broadgate EC2 British Land/Blackstone UBS Q1 2015 700,000 0 76 1&2 New Ludgate EC4 Land Securities Q2 2015 375,000 375,000 77 Bloomberg Place EC4 Bloomberg/Stanhope Bloomberg Q1 2016 663,000 0 Total 5,134,000 3,048,000 City Completed 78 77 Queen Victoria Street EC4 Beltane Asset Management Q2 2013 30,000 30,000 79 One St Paul’s, 1‑3 Creed Lane EC4 AXA REIM Genesis Oil & Gas Consultants Q2 2013 56,000 0 80 Finsbury Circus House, 10 South Place EC2 Union Investment Real Estate/ Q2 2013 145,000 145,000 CORE 81 36‑39 Queen Street EC4 London & Oriental Q3 2013 45,000 45,000 82 7 Bishopsgate EC2 Henderson Global Investors Q3 2013 57,000 57,000 83 18‑30 Leonard Street EC1 London Square Developments Q3 2013 20,000 20,000 84 Sixty London, Holborn Viaduct EC1 AXA REIM/Favermead Amazon Q3 2013 210,000 0 85 City Tower, 40 Basinghall Street EC2 Great Portland Estates/ Q3 2013 84,000 84,000 Starwood Capital Total 647,000 381,000 Southbank Under Construction 86 Sea Containers, Upper Ground SE1 Archlane Ltd Ogilvy, Puma Q1 2014 290,000 38,000 87 240 Blackfriars Road SE1 Great Portland Estates/ United Business Media Q1 2014 224,000 118,000 Ropemaker Properties 88 South Bank Tower, Stamford Street SE1 CIT Q1 2015 217,000 217,000 Total 731,000 373,000 Southbank Completed 89 The Crane Building, 22 Lavington SE1 Dorrington Plc Q2 2013 48,000 48,000 Street 90 The Place, London Bridge SE1 Sellar Property Group/Qatar News International Q3 2013 420,000 0 National Bank Total 468,000 48,000 King’s Cross Under Contruction 91 Regeneration House N1C King’s Cross Central Limited The Art Fund Q4 2013 10,000 0 Partnership 92 One Pancras Square N1C King’s Cross Central Limited Q1 2014 55,000 55,000 Partnership 93 Dance Studio. Regent Quarter N1 P&O Estates (IPOE)/Henderson Macmillan Publishing Group Q1 2014 37,000 0 Global Investors 94 Five Pancras Square N1C King’s Cross Central Limited Camden Council Q2 2014 150,000 0 Partnership 95 Two Pancras Square N1C King’s Cross Central Limited PRS For Music Q2 2014 130,000 78,000 Partnership 96 Seven Pancras Square N1C King’s Cross Central Limited The Office Group Q3 2014 30,000 0 Partnership 97 Six Pancras Square N1C AXA REIM/BNP PRE BNP Paribas Q4 2014 370,000 170,000 Total 782,000 303,000 King’s Cross Completed 98 The Stables, Regent Quarter N1 P&O Estates (IPOE)/Henderson Macmillan Publishing Group Q3 2013 10,000 0 Global Investors 99 Printworks, Regent Quarter N1 P&O Estates (IPOE)/Henderson Macmillan Publishing Group Q3 2013 38,000 0 Global Investors Total 48,000 0 Docklands Under Contruction 100 25 Churchill Place E14 Canary Wharf Group European Medicines Agency Q1 2014 540,000 290,000 Total 540,000 290,000 Docklands Completed Total 0 0

Red text indicates new starts this survey

Crane Survey London Office Winter 2013 17 18 Definitions

Time period: April – September 2013

Size minimum: 10,000 sq ft

Construction type: New build construction or significant/comprehensive refurbishment – work to have started, demolition stages not included

Download the new London app

With the future of London literally at your fingertips, the New LondonApp is a must have for investors, property owners, developers or occupiers, within the UK and internationally. There is simply no other tool in the market with the capability to showcase London’s offer in this way and it is set to revolutionise how the industry goes to market. London Offices Crane Survey data now added. www.deloitterealestate.co.uk/newlondonapp

Crane Survey London Office Winter 2013 19 Matthew Elliott Jon Milward City Agency Development 020 7303 3592 020 7303 3843 [email protected] [email protected]

Jamie Olley Stephen Peers City Investment West End Agency 020 7007 4451 020 7303 3260 [email protected] [email protected]

Anthony Duggan Ann Ibrahim Head of Research Research 020 7303 3134 020 7303 3200 [email protected] [email protected]

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.

Deloitte LLP is the United Kingdom member firm of DTTL.

This publication has been written in general terms and therefore cannot be relied on to cover specific situations; application of the principles set out will depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Deloitte LLP would be pleased to advise readers on how to apply the principles set out in this publication to their specific circumstances. Deloitte LLP accepts no duty of care or liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication.

Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 2 New Street Square, London EC4A 3BZ, United Kingdom. Tel: +44 (0) 20 7936 3000 Fax: +44 (0) 20 7583 1198.

Designed and produced by The Creative Studio at Deloitte, London. 32096A