London Office Crane Survey Construction activity boost · Crane Survey results Construction volumes up The total volume of office space under construction is at a seven-year high

London Office Crane Survey Construction activity boostWinter 2015

Contents

The report 1

Key findings 2

Submarket snapshots 4

Crane Survey results 13

Outlook 22

Development table 30

Contacts 36

London Office Crane Survey 1

The report

Where?London, covering the central office markets: City, West End, Docklands, King’s Cross,Midtown, Paddington and Southbank

What?A report which measures the volume of office development taking place across central London and its impact

How?A team of researchers have walked every street in central London to monitor office construction. Our field research is thenverified with direct industry links and in-house property experts

Who?Developers building new offices or undertaking significantoffice refurbishment of 10,000 sq ft +

When?1 April 2015 to 30 September 2015

2

Key findings


Key findings

Outlook

Volume of new spacecompleted in 2015 expected to bethe lowest since 2012

Over half of the space under construction scheduled to complete over the next 15 months

Institutions are now developing the most new space

Rise in demolition levels to 6.4 million sq ft indicates more constructionis imminent

Low vacancy rates will fuel further pre-letting activity

Further upwardpressure on rentallevels

Tenants in expansion mode as they take more space

Crane Survey results

The TMT sector continues to lead leasing activity ofnew space

2.5 million sq ft of new office space completedin 2015 so far

Office construction is up18% over the past six months

to 11.1 million sq ft

26 new schemes have started totalling3 million sq ft,which is above the 10 year average

38% ofspace underconstructionis already let

TOLET

4

Submarket snapshots


Which sector is currently taking the most space?

Average size of a scheme

Number of new construction starts

Central London office development pipeline

Total amount completed this survey Total amount of space under construction which has been let

144,500 sq ft

Average size of a floor

Number of cycle spaces being built

13,000 sq ft

10,477

Total amount under construction

1.4 million sq ftacross 20 buildings

Million sq ft

Completed u/c available u/c let

0

2

4

6

8

10

201920182017201620152014201320122011201020092008200720062005200420032002

TMT

19

26

Highest

Lowest

37(2007)

4(2010)

10 year average

Today

Volume of new spacecontinues to rise higherthan the 2011 high point

38%let

0% 100%

Construction is up by 18% from six months ago.

Today: 11.1 million sq ft

Lowest2.7 million sq ft (2010)

Highest19.5 million sq ft (2002)

Submarket snapshotsCentral London

6

Which sector is currently taking the most space?



City office development pipeline

196,000 sq ft


Number of cycle spaces being built

14,000 sq ft

4,562


Total amount completed this survey


Total amount of space under construction which has been let

40%let

0% 100%

Million sq ft


0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

201920182017201620152014201320122011201020092008200720062005200420032002

TMT

7

13

Highest

Lowest

20(2007)

0(2010)

10 year average

Today

A 30% rise in the numberof new starts.

Construction volumes have risen by 26%.




Submarket snapshotsThe City


Submarket snapshotsWest End


100,700 sq ft

Which sectoris currentlytaking themost space?


13,000 sq ft

Number of cycle spacesbeing built

2,889

West End office development pipeline

Number of new construction starts Total amount under construction




Million sq ft


0.0

0.5

1.0

1.5

2.0

2.5

201920182017201620152014201320122011201020092008200720062005200420032002

Construction volume up 5%.




2

8

4

Highest

Lowest

13(2011)

(2009)

10 year average

Today

Number of new starts down bytwo-thirds from six months ago

31%let

0% 100%

TMT

8

Submarket snapshotsDocklands


688,000 sq ft



26,400 sq ft


864

Docklands office development pipeline


0%let

0 %available



0 sq ftTotal amount of space under construction which has been let

Million sq ft


0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

201920182017201620152014201320122011201020092008200720062005200420032002

Today: 0.7 million sq ft Lowest

0 million sq ft (2014)


0

Highest

Lowest

1(2012)

(2015)1

0

10 year average

Today

41%let

0% 100%

Financial


Submarket snapshotsKing’s Cross


104,000 sq ft

Which sectoris currentlytaking themost space? TMT


11,000 sq ft


646

King’s Cross office development pipeline




Highest

4(2012)

0

Lowest

(2014)

1

Today

Construction volume rises by 38% with one new start


Lowest0 million sq ft (2011)


Million sq ft


0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

201920182017201620152014201320122011201020092008200720062005200420032002

69%let

0% 100%

2

10 year average

10

Submarket snapshotsMidtown


95,500 sq ft



10,900 sq ft


1,020

Midtown office development pipeline





Million sq ft


0.0

0.2

0.4

0.6

0.8

1.0

1.2

201920182017201620152014201320122011201020092008200720062005200420032002

Construction volumes up by 6% in six months




0

6

Highest

Lowest

8(2013)

(2010)

Today

Same number of newstarts as six months ago

3

10 year average

Professional

41%Let

0% 100%


Submarket snapshotsPaddington

0


112,500 sq ft



10,000 sq ft


208

Paddington office development pipeline


Highest

Lowest

2(2006)

(2015)1

1

10 year average

Today




0% 100%

Million sq ft


0.0

0.1

0.2

0.3

0.4

0.5

0.6

201920182017201620152014201320122011201020092008200720062005200420032002

One new start boosts construction volume by 142%




First new start since 2014

N/A

12

Submarket snapshotsSouthbank


126,000 sq ft



14,700 sq ft


288

Southbank office development pipeline




Million sq ft


0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

201920182017201620152014201320122011201020092008200720062005200420032002

One new start increases construction volume by 15%




0

Highest

Lowest

2(2012)

(2015)1

1

10 year average

Today

First new start inover 12 months

0% 100%

N/A

Crane Survey results


14

Crane Survey results Construction volumes up

The total volume of office space under construction is at a seven-year highThe latest Crane Survey results show that the volume of office construction in central London has continued to rise, increasing by 18% over the past six months to 11.1 million sq ft. Activity is now comfortably above the 10-year average of 9.2 million sq ft and at the highest level since 2008.

Crossrail signals new office startsAt 73% of the total volume of construction, the City and the West End account for the bulk of activity. It is worth noting that, especially in the West End, a growing number of new developments are located away from the core – in areas such as North of Oxford Street that are set to gain greater connectivity through the arrival of Crossrail. Similarly in Midtown, which will also benefit, construction volumes have increased further in this survey (6%).

In fact, all but one London submarket (Docklands) has recorded an increase in construction in this survey. There has been a particularly notable rise (148%) in Paddington where two schemes are now under construction in a market that last saw any major development over five years ago.

0.5King’sCross

1.3Midtown

0.2Paddington

0.7Docklands

0.3Southbank

2.4West End

5.7City

11.1Total

Total volume under construction by submarketMillion sq ft

Total volume under construction per survey – central LondonMillion sq ft

2011

Q3

2012

Q1

2012

Q3

2013

Q1

2013

Q3

2014

Q1

2014

Q3

2015

Q1

2015

Q3

2011

Q1

2010

Q3

2010

Q1

2009

Q3

2009

Q1

2008

Q3

2008

Q1

2007

Q3

2007

Q1

2006

Q3

2006

Q1

2005

Q3

2005

Q1

2004

Q3

2004

Q1

2003

Q3

2003

Q1

2002

Q3

2002

Q1

0

2

4

6

8

10

12

14

16

18

20


No summer slowdown: high number of new startsHot on the heels of the 31 new schemes recorded in our last Crane Survey, six months on there has been little let up in pace, with 26 developments starting construction. These new schemes provide a further 3 million sq ft to the construction pipeline. The combined total of new space starting across these last two surveys is 7.5 million sq ft, the highest in over 13 years.

The City continues to lead with 13 new starts in this survey, the highest since 2012, and with a combined total of 2 million sq ft it accounts for 66% of the space started across central London. Whilst not quite reaching the recent peak of 2011, the current level is double that of the 10-year average. The six new construction starts in Midtown equal the number recorded six months ago, although the volume of space has decreased. Similarly fewer new construction starts have been reported in the West End and King’s Cross. However, the smaller markets of Paddington, Southbank and King’s Cross have all seen new starts this survey.

Volume of new starts per survey – central LondonMillion sq ft

Source: Deloitte Real Estate

2011

Q3

2012

Q1

2012

Q3

2013

Q1

2013

Q3

2014

Q1

2014

Q3

2015

Q1

2015

Q3

2011

Q1

2010

Q3

2010

Q1

2009

Q3

2009

Q1

2008

Q3

2008

Q1

2007

Q3

2007

Q1

2006

Q3

2006

Q1

2005

Q3

2005

Q1

2004

Q3

2004

Q1

2003

Q3

2003

Q1

2002

Q3

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Average volumeof new starts

Let sq ft Available sq ft

City 5,685,300 2,302,300 3,383,000

West End 2,416,000 745,000 1,671,000

Docklands 688,000 280,000 408,000

King’s Cross 520,500 359,000 161,500

Midtown 1,338,000 543,000 795,000

Paddington 225,000 0 225,000

Southbank 252,000 0 252,000

Total 11,124,800 4,229,300 6,895,500

Winter 2015 – Office space under construction

Change since last survey

0% 0% 0%

0%

0%

-14%

-24%

5%

6%

142% 142%

38%

15%

18%

5%

21% 16%

15%

7%

26%

101%

120%

6% 43%

Total sq ft

16

Developer Rank

Brookfield 1

Land Securities 2

Canary Wharf 3

Stanhope 4

Great Portland Estates 5

King’s Cross Limited Partnership 6

Derwent London 7

Blackstone 8

WRBC Development 9

Oxford Properties 10

Top 10 developers by office space under construction across central London The shift in developers continuesOur recent Crane Surveys have highlighted the gradual shift away from property companies developing space towards other types of developers. As we continue out on an upward trajectory of new development, this shift continues to play out in our latest results. Institutions now account for 39% and their quantum of space is up by 16% to 4.4 million sq ft. As schemes by property companies start to complete and fall out of the Crane Survey, this trend will become more prominent. This is already evident in the ranking of the current list of top developers (ranked by volume of space under construction).

2015 to deliver the lowest level of completions in three yearsAs previously predicted the level of completions in 2015 will not come close to the volumes seen in 2014. Our estimates of six months ago have now been reined in a little further, as we now expect just 3.3 million sq ft to complete in 2015. A move in completion dates has beset a number of schemes, pushing them into 2016, and having only recorded 2.5 million sq ft this year so far, the picture is one of low supply for 2015. This is exacerbated by the strong letting activity on those schemes left to complete this year, reducing the amount available to just 32% or 272,000 sq ft.

This comes at a time when the level of available office space in the market has maintained its downward course throughout 2015 and is now at its lowest level in 14 years.

Largest building to havecompleted in this surveyAlphabeta, 14 Finsbury Square

City: 220,000 sq ft


However, as a result of some delayed development schedules and developers responding to a dearth of supply by kick-starting refurbishment projects, the level of completions predicted for 2016 is already in excess of 5 million sq ft, which is above the average level of Grade A take-up across central London. Our research shows that the next 15 months will see over half (56%) of the space of new starts complete.

The window for pre-letting is now wide open4.2m sq ft of space under construction has already been let – up 21% from our last survey. Although the percentage share of let space is at 38% (up from 37%), the rise in the total volume of space under construction has lessened the visible increase. Businesses have taken the opportunity to commit themselves to new space, in a market that is continuing to see a tightening of supply in the short-term. This is evident in the recently completed schemes, where 69% of space has already been let.

Largest new start

100 BishopsgateCity:867,000 sq ft

18

TMT sector drives leasing activityThe TMT sector remains the most dominant in taking new space. Of the space that has been leased either as a pre-let or during construction, TMT businesses account for 44%, equating to 1.8 million sq ft. The financial sector, which comes in second with 27%, has increased its share on six months ago, when it stood at 25%.

Yet if we look at the wider leasing activity of all office space, not just what is under construction, the financial sector is the largest followed by the corporates. As availability of supply reduces further over the coming months, it is likely that we will see some requirements from financial firms fulfilled by taking space under construction.

Whilst the TMT and financial sectors have taken the most new space, other businesses such as professional, legal and corporate have all recorded double digit growth in floorspace taken between surveys.

Reason for occupier movement


63%

31%

1%

5%

Consolidation – more space

More space

Consolidation – less space

New entrant Tenants are moving from a combined 2.3 million sq ft to 4.2 million sq ft

2.3m sq ft

4.2m sq ft

Percentage of spaces let by sector

Government

4%Insurance

2%Legal

5%Financial

27%TMT

44%Corporate

9%Professional

7%Other

2%


Businesses in expansion mode For much of the past year, results from Deloitte’s quarterly CFO surveys have shown that UK corporates have been raising their expectations for hiring. This sentiment is reflected in our latest Crane Survey results, which show that businesses leasing space continue to be in expansion mode.

Analysing those tenants and their reasons for taking space, 63% are taking more space as a result of consolidating various sites they currently occupy. A further 31% are taking expansion space. This has been an increasing trend since Q1 2014, when this reason accounted for just 18%. In fact, considering all the deals, tenants are moving from a combined 2.3 million sq ft to 4.2 million sq ft.

The City strengthens its attraction for tenantsOver the past couple of years we have been looking at the tenant movement of those that take space in the new developments. We have clearly identified that the City consistently retains the majority of its businesses as they move around the EC postcodes. Observing more closely, some of these firms are moving to the ‘Tech belt’, away from the core to the Shoreditch/Old Street area. This is strengthened when looking at the recently completed schemes: six out of eight schemes were located in the ‘Tech belt’, amassing 13 tenant deals between them, as opposed to just four elsewhere in the City, of which it could be argued some are closer to Midtown. Nevertheless, smaller locations have also become popular as is evident with King’s Cross and the regeneration of Victoria.

Movedin

4Moved

out

1Stayed

10Net

submarket deals

13Total

numberof deals

14Moved

in

4Moved

out

2Stayed

5Net

submarket deals

7Total

numberof deals

9Moved

in

1Moved

out

0Stayed

0Net

submarket deals

1Total

numberof deals

1Moved

in

3Moved

out

0Stayed

0Net

submarket deals

3Total

numberof deals

3Moved

in

2Moved

out

2Stayed

4Net

submarket deals

4Total

numberof deals

6

Tenant movement

West End

Docklands

King’s Cross

Midtown

City

20

The tech belt Construction keeps pace with demand

LON

DO

N B

RID

GE

THE HIGHWAY

BLA

CK

FFR

IAR

S B

RID

GE

MIL

LEN

NIU

M B

RID

GE

VICTORIA EMBANKMENT

SOUTHWARK STREETSTAMFORD STREET

WA

TERLOO

BRIDG

E

VICTORIA EMBANKMENT

CANNON STREET

LEADENHALL STREET

LONDON WALL

BEECH STREET

OLD STREET

OLD STREET

COMM

ERCIAL STREET

HOUNDSDITCH LEMA

N STR

EET

KIN

GSL

AN

DR

OA

D

CITY ROAD

STJO

HN

STR

EET

CITY ROAD

EAST

RO

AD

FARRINGDON ROAD

LONDON WALL

CHEAPSIDE

STRAND

LUDGATE

HOLBORN

HOLBORN

FETT

ER LA

NE

HILL

CABLE STREET

MINT STREET

ROYAL

OLD

STR

EET

BRO

AD BI

SHO

PGA

TE

GO

SWELL R

OA

D

CEN

TR

AL ST

REET

GO

LDEN

STREET

BR

ICK

LAN

E

BETHNAL GREEN

VA

LLAN

CE R

OA

D

GOSSET STREET

HACKNEY ROAD

ROAD

Tech belt

The City

Over recent years the attractiveness and subsequent migration of businesses to areas such as Old Street has been well documented. Typified by technology and media start-ups, the area is now home to some of the most innovative firms in the industry. The surrounding locations have, in turn, increased in popularity among businesses feeding off and into this developing location. It is these areas that have traditionally been the fringes of the main central London submarkets. In order to understand the area’s dynamics, and particularly the construction activity, we have created a ‘tech belt’ layer to our data.

The adjoining map and snapshot profile highlights the ‘tech belt’, an arching area that takes in northern parts of the City, reaching west to King’s Cross and eastwards towards Aldgate. Analysis of our Crane Survey database shows that 2015 and 2016 will deliver close to 2 million sq ft of new office space in this area, significantly above the annual average level of completions of 260,000 sq ft.

This survey shows that 0.5 million sq ft of office space has completed over the last six months, of which 81% of space was let prior to completion. Marginally lower, the current level of leasing activity on schemes under construction is running at 73%.

Whether the current ramping up of construction in this area is the result of a mixture of occupier demand, investor/developer focus, and a shortage of supply elsewhere. Further activity is expected over the next few years. A number of schemes feature in our Crane Survey forecasts and we expect the pace of development to continue.


Tech belt development snapshot


247,250 sq ft



18,845 sq ft


937

Tech belt office development pipeline





Million sq ft


0.0

0.5

1.0

1.5

201920182017201620152014201320122011201020092008200720062005200420032002





2

1

Highest

Lowest10 year average

Today

73%let

0% 100%

TMT

5(2015)

0(2014)

22

Outlook


OutlookThe next five years

Overview• The erosion of available office space continued

throughout 2015, exacerbated by low levels of new supply and a high level of letting on completed space.

• Adding to the high volume of office space started in our last survey, the wave of new starts recorded in this survey will go some way towards alleviating the current shortage of Grade A space.

• Indeed, the past six months has seen the pipeline for 2016 bolstered by a further 1 million sq ft.

• In the short-term however, we still envisage a shortage of supply. We expect that tenants will continue to seek pre-completion lettings to secure space, reducing the amount becoming available to the market and, therefore rental levels could still be subject to further upward pressure.

• We see this enticing developers to start further developments. Our analysis of future schemes not yet under construction shows that delivery of space in 2017-19 may exceed the long-run average and act to slow rental growth in these years.

• However, we are also mindful of potential capacity constraints that could affect the timing or cost of delivery of some schemes in the pipeline.

AverageGrade Atake-up

Central London development pipelineMillion sq ft


0

2

4

6

8

10


2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

24

The occupier market remains activeTake-up in central London in 2014 was the highest in eight years, and whilst leasing activity in 2015 has not quite matched it, demand remains reasonable. In the first three quarters of the year, the volume of Grade A space taken was slightly below the 10-year average, but with several schemes under offer, it could move above by the end of the year.

Central London availability continues to slideAt the end of Q3 the availability ratio had reached its lowest level in 14 years at 3.9%, with notable drops in the Southbank, Docklands and City markets.

New supply this year has done little to improve availability: the latest Crane Survey shows that over two thirds of space completed in the last six months had already been let. As we predicted in 2013, both pre-letting and early-letting activity on future space would temper the amount of new space actually hitting the market. Consequently, some tenants are seeking pre-completion lettings to secure space for requirements that may not be due for a number of years. Given the low volume of space delivered in this Crane Survey, we expect these dynamics to continue in the short term, and occupier choice to remain constrained.

0

5

10

15

20

25

30

Grade A Secondhand

Central London availability levels by gradeMillion sq ft

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Q3


Shift in occupiers leasing spaceThe latest Deloitte CFO Survey points to a hardening of sentiment towards corporate expansion and capital expenditure, which could trickle through to leasing decisions on new space. Our research shows that this has not yet been the case, with letting activity increasing on new space, both completed and under construction. Indeed, the results of the Crane Survey show that while firms may be using office moves as a means to consolidate various sites, in the process they are also taking more space, as they factor in room for growth.

Nevertheless, we are seeing a shift in the type of businesses seeking to occupy new office space in London. The financial sector is in a period of far-reaching and fundamental change, as we explored in our recent report London Business Footprint: The evolving financial sector. On the other hand, the TMT sector has gone from strength to strength since the financial crisis. According to recent data from London & Partners (the Mayor of London’s investment company), investors have invested £1bn into London’s tech sector in 2015. The FinTech (financial technology) sector has raised £362 million this year. Technology has become a driving component of recent economic growth and as such we expect this sector to remain a leading occupier for office space.

How much will be delivered from current construction?The increase in construction activity recorded in our latest survey is now starting to reshape the delivery pipeline, particularly for 2016. Whilst the volume of space under construction has increased, so too has the level of letting activity on this space – 38% is already let since our last survey.

There is still only a single scheme due for completion in both 2018 and 2019, but this is unlikely to remain the case for much longer. A number of factors currently at play suggest that our next Crane Survey could see a further significant uplift in activity.

Completed u/c available u/c let Agreed let not yet started

Average annual deliveryForecast speculative Forecast pre-let


0

2

4

6

8

10

12

14

16

Central London development pipeline forecastMillion sq ft

1990

1991

1992

1993

1994

1985

1986

1987

1988

1989

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

26

Rising demolition clears the way for constructionIn the past few surveys we have reported on the level of demolition activity that has been taking place, and have used this as an indicator of future construction starts. The amount of space under demolition has consistently hovered around the 5 million sq ft mark, but in this survey we have seen a 25% increase, taking the total volume of space being prepared to over 6 million sq ft.

The findings are also supported by recent data on construction contracts from the Office of National Statistics. This shows that the volume of contracts awarded for new commercial construction in London has been increasing since 2014, with early indications showing that this rise continued through into Q3 2015. There is a relatively strong correlation between this data and our own data on new construction starts (when lagged by nine months).

Neither the rise in demolition activity nor the increase in construction contracts are absolute guarantees of a further uplift in new starts. Taken together, however, they certainly support our expectation of a sustained rise in new starts over the coming year.

Developers continue to target 2018-19 for deliveryOur current Crane Survey results have shown that some schemes under construction and originally due to complete in 2015 are now drifting into early 2016. The same can be said for those schemes that have yet to start. Our analysis of the future pipeline shows that the outlook for development has shifted somewhat.

The amount of space predicted to be delivered in the latter years of our forecast remains above the long-term average - 2018 could see the highest volume of space delivered since 1992. However, it is our forecast for 2019 that has increased more significantly since our last survey. This is partly due to changing delivery dates, but also to the inclusion of new schemes. Similarly, schemes that require a pre-let could affect the pipeline as completion dates on these developments will be more flexible.

Our data shows that 1.5 million sq ft of space has already been let but has yet to start construction. This is a something that we will continue to see as our forecast period starts to extend and tenants look further out to secure the right type of space.

It is worth noting that the supply of future space continues to differ between markets with increased levels delivered sooner in the West End, whereas in the City it will come later in the forecast period.

Demolition levels have increased by

since our last Crane Survey to

25% 6.4million sq ft


Rising rents outside of core areas A consequence of reduced availability has been strong rental growth that has not just been confined to the core submarkets of Mayfair and the City. Over the past year, offices in postcodes such as E1 and N1 have recorded double-digit growth. When looking over the past five years, growth in these postcodes turns to triple figures. Areas once thought as fringe have seen the strongest rental growth.

Our data shows that developers have recognised this, with the list of potential new developments extending far beyond the traditional core markets.

Mayfair/ St James

North of Oxford Street

Soho Victoria Covent Garden

King’s Cross

Midtown City E1 N1 Canary Wharf

Southbank

Annual change 13% 0% 6% 3% 7% 19% 0% 3% 43% 25% 4% 18%

5-year change 53% 64% 55% 39% 45% 70% 21% 17% 150% 155% 10% 48%

Central London prime rental change by submarket: Q3 2015

A good example of this is the ‘tech belt’ – an area that skirts around the traditional core of the City, covering an area from Pentonville Road in the west to Brick Lane in the east. Tenant demand has led to greater leasing, and increasingly, new developments. Current construction activity in the ‘tech belt’ is buoyant, so much so that 2015-2016 will see the highest level of new space delivered for over 13 years. The volume of space expected in 2016 is four times the average usually delivered, yet almost three quarters of the space is already let. What’s more, there is significant scope for further development to take place in this area, with our database showing schemes that could deliver a potential two million sq ft of space by 2019.

28

2017 rateable values are getting closerIn addition to higher rents, the delayed rating revaluation now due in 2017 (based on April 2015 valuations) could well have a further impact on the operating costs of some office occupiers. The last valuation date for rating purposes was 2008 and the average increase in submarket rents in the period up to Q2 2015 has been almost 50%, so some businesses could well expect substantial rate rises from 2017.

This will be an important consideration for tenants that have active requirements for new space, and could shift the focus of their search more towards better value locations. In turn, this could be a further trigger for businesses to move between submarkets – something that we have increasingly seen in recent years.

Capacity constraints could impact the speed of deliveryIn addition to understanding when the volume of space completed might peak, we can also use our data to gauge the point at which the volume of space actually under construction could peak. This is important because our pipeline suggests construction activity could rise significantly over the next 12 months, and exceed highs last seen in 2008.

This development will in part, however, depend on the ability of the construction industry to meet demand. Contractors reduced their capacity during the economic downturn, and some have been slow to rebuild it. This is already part of the reason that some schemes are being delayed, even before the increase in office construction that we predict has started to kick in. Meanwhile, London is seeing higher levels of development activity in the residential sector and on infrastructure projects, diverting capacity from the office sector. Labour pressures could emerge both for skilled trades as well as white-collar roles.

Of course, many developers will have secured contractors for their future schemes, or be in the process of doing so, and thus removing this risk. And there is still time for contractors to raise capacity, as our data suggests the peak of construction activity will not be reached until 2017. Nevertheless, we are mindful of the potential for short-term capacity constraints to affect the cost or timing of some future developments.


Developing at the right time, in the right locationThe past six months have seen a further increase in construction, with activity rivalling levels last seen in 2009. Our forecasts suggest that the coming year could see construction activity rise still further, with both 2018 and 2019 now potentially delivering significant volumes of space. Nevertheless, with the amount of space currently under construction and due for completion in these years still low, there could be a first-mover advantage to be shared amongst developers that are able to commence projects imminently.

As ever, the debate is whether the future supply will be either more or less than tenants demand. Our view is that this question really needs to be considered in terms of submarkets or even individual streets, such are the nuances of the different parts of the central London market. Indeed, tenants’ more flexible attitudes to the locations they will consider only reinforces this. Yet in aggregate, we believe that our current projections would not yet constitute a significant oversupply – a view supported by the extremely low levels of current availability and the high degree of pre-completion lettings.

The bigger picture, however, is that London remains an unrivalled attraction for global businesses. As we have discussed in detail in previous Crane Surveys, our research shows that it is home to the greatest number of high-skilled employees in the world, many of whom are working in parts of the economy in which London is a world leader, such as TMT and FinTech. Within Europe, London plays host to the highest number of corporate headquarters by far. Perhaps most importantly, London remains a location that is keeping abreast of change be it through infrastructure, growing business diversity or even office development.

Development table

30


Development table

No.

Scheme

Post code

Developer

Tenant

Completion date

Total space sq ft

Space available

sq ftCity Under Construction 1 20 St Dunstan’s Hill EC3 Forum Partners/Office Space in Town Office Space In Town Q4 2015 75,000 –2 4 Fore Street EC2 The Salters’ Company The Salters’ Company, Undisclosed tenant Q4 2015 50,000 –3 8 Finsbury Circus EC2 Mitsubishi Estate Company/Stanhope Q1 2016 170,000 170,0004 Sutton Yard EC1 East City Investments Q1 2016 75,000 75,0005 9-10 Philpot Lane EC3 One Re One Re Q1 2016 18,300 –

6 1 King William Street EC4 Nippon Telegraph and Telephone Corporation/Kajima Europe

Q2 2016 102,000 102,000

7 The Monument Building ,11-19 Monument Street

EC3 Skanska Q2 2016 94,000 94,000

8 White Collar Factory, Old Street Yard EC1 Derwent London The Office Group, AKTII, BGL Group Q3 2016 276,000 192,0009 45 Cannon Street EC4 Morgan Capital Partners LLP Q3 2016 88,500 88,50010 Seventy Wilson, 70 Wilson Street EC2 Columbia Threadneedle/Stanhope/

Low Carbon WorkplaceQ3 2016 70,000 70,000

11 One Puddle Dock EC4 Network Rail Q3 2016 60,000 60,00012 108 Cannon Street EC4 Beltane Asset Management/

M&G Real EstateQ3 2016 40,000 40,000

13 69 Carter Lane EC4 Columbia Threadneedle/Stanhope/ Low Carbon Workplace

Q3 2016 30,000 30,000

14 Principal Place, Shoreditch High Street E1 Brookfield Amazon Q4 2016 607,000 –15 Angel Court EC2 Mitsui Fudosan/Stanhope Q4 2016 300,000 300,00016 One Creechuch Place EC3 Helical Bar/HOOP/City of London

CorporationQ4 2016 273,000 273,000

17 Cannon Green House, Bush Lane EC4 Ocubis Q4 2016 80,000 80,00018 Alderman's House, 117-121 Bishopsgate EC2 Amsprop Q4 2016 65,000 65,000 19 21 Lime Street EC3 City of London Corporation Q4 2016 35,000 35,000 20 1 Aylesbury Street EC1 Meritcape Alexander McQueen Q4 2016 31,000 – 21 Bloomberg Place EC4 Bloomberg/Stanhope Bloomberg Q1 2017 669,000 – 22 33 Central, 33 King William Street EC4 HB Reavis Q1 2017 225,000 225,000 23 2 London Wall Place EC2 Brookfield/Oxford Properties Cleary Gottlieb Steen & Hamilton Q1 2017 177,000 117,000 24 24 King William Street EC4 Beltane Asset Management/Angelo Gordon Q1 2017 71,500 71,500 25 Dixon House, 72-75 Fenchurch Street EC3 Greenoak Real Estate Q1 2017 42,000 42,000

26 52-54 Lime Street & 27 Leadenhall Street (The Scalpel)

EC3 WRBC Development WR Berkeley Q2 2017 386,000 310,000

27 1 London Wall Place EC2 Brookfield/Oxford Properties Schroders Q2 2017 309,000 – 28 10 Fenchurch Avenue (120 Fenchurch Street) EC3 Generali Real Estate/Greycoat/CORE M&G Investments Q4 2017 399,000 76,000 29 100 Bishopsgate EC3 Brookfield Q3 2018 867,000 867,000

Total 5,685,300 3,383,000 City Completed 30 Alphabeta, 14 Finsbury Square EC2 Resolution Property SEI Investments, Silicon Valley Bank, We Are

Social, Maxus Global, Opentable, Mendeley, Virtual 1, Huckletree

Q2 2015 220,000 –

31 2 New Ludgate EC4 Land Securities Mizuho Q2 2015 195,000 – 32 1 New Ludgate EC4 Land Securities Ropes & Gray, Commonwealth Bank of

Australia, ZS AssociatesQ2 2015 154,000 26,000

33 C Space (Maple House, 37-45 City Road) EC1 Helical Bar DLKW Q2 2015 62,000 15,700 34 The Studio, The Bower, 211 Old Street EC1 Helical Bar/Crosstree Real Estate Partners John Brown Media Q2 2015 19,000 – 35 The Warehouse, The Bower, 211 Old Street EC1 Helical Bar/Crosstree Real Estate Partners Farfetch.com, CBS Interactive, Allegis Q3 2015 130,000 12,500 36 99 Clifton Street EC2 Helical Bar/UBS Triton Property Q3 2015 45,000 45,000 37 122 Back Church Lane E1 Boultbee Brooks Ltd Q3 2015 24,000 24,000

Total 849,000 123,200

Red texts indicates a new start

32

Development table


No.

Scheme

Post code

Developer

Tenant

Completion date

Total space sq ft

Space available

sq ftWest End under construction38 Zig Zag Building, Victoria Street SW1 Land Securities Jupiter Asset Management Q4 2015 188,000 132,000 39 Curtis Green Building, Victoria

EmbankmentSW1 Metropolitan Police Metropolitan Police Q4 2015 150,000 –

40 1-2 Welbeck Street W1 Aberdeen Asset Management Q4 2015 70,000 70,000 41 127 Sloane Street SW1 The Cadogan Estate Marshall Wace Q4 2015 45,000 – 42 Yalding House, 152 Great Portland Street W1 British Land Q4 2015 23,000 23,000 43 1 St James's Market, Regent Street SW1 The Crown Estate/Oxford Properties Q1 2016 144,000 144,000 44 1 New Burlington Place W1 The Crown Estate/NBIM/Exemplar Davidson Kempner Capital Management Q1 2016 79,000 62,000 45 2 St James's Market, Haymarket SW1 The Crown Estate/Oxford Properties Q1 2016 67,000 67,000 46 48-49 Pall Mall SW1 SFL1 (Qatar National Bank) Q1 2016 32,000 32,000 47 51-52 Welbeck Street W1 Howard de Walden Estates Q1 2016 17,000 17,000 48 25 Bury Street SW1 The Crown Estate Q1 2016 12,000 12,000 49 Nova South SW1 Land Securities Advent International, Egon Zehnder Q2 2016 296,000 246,000 50 Colegrave House, 70 Berners Street W1 Arcadia Arcadia Q2 2016 155,000 – 51 64-66 Wigmore Street W1 Howard de Walden Estates Q2 2016 55,000 55,000 52 Clarges House, 6-12 Clarges Street, and

82-84 PiccadillyW1 British Land Q2 2016 48,000 48,000

53 Verde SW1 (Eland House, Bressenden Place)

SW1 Tishman Speyer Q3 2016 281,000 281,000

54 Nova North SW1 Land Securities Q3 2016 184,000 184,000 55 30 Broadwick Street W1 Great Portland Estates Q3 2016 87,000 87,000 56 11-12 Hanover Square W1 Aviva Investors Q3 2016 40,000 40,000 57 15-18 Rathbone Place W1 Royal London Asset Management Q3 2016 28,000 28,000 58 Rathbone Square, 35-50 Rathbone Place W1 Great Portland Estates Facebook Q1 2017 216,000 – 59 7-10 Hanover Square W1 Morgan Capital Partners LLP Undisclosed tenant Q1 2017 71,500 15,500 60 1 Dean Street W1 Great Portland Estates Q2 2017 42,500 42,500 61 The Copyright Building, 30 Berners Street W1 Derwent London Q3 2017 85,000 85,000

Total 2,416,000 1,671,000 West End Completed 62 24 Savile Row W1 Terrace Hill/Aerium DSQUARED2 Q2 2015 25,000 18,000 63 11 Soho Street W1 Dukelease Properties/British Airways

Pension TrustSt Ives Q2 2015 14,000 7,000

64 33 Great Portland Street W1 Harmsworth Pooled Property Unit Trust Undisclosed owner occupier Q2 2015 11,000 – 65 91 Wimpole Street W1 Lazari Investments Q3 2015 57,000 57,000 66 7 Air Street W1 The Crown Estate/NBIM Q3 2015 47,000 47,000 67 21 Glasshouse Street W1 The Crown Estate/NBIM Undisclosed tenant Q3 2015 26,000 – 68 55 St James's Street SW1 Lothbury Investment Managers Vision Capital Q3 2015 25,000 20,000 69 30 Market Place W1 CBRE Global Investors Q3 2015 20,000 20,000 70 34-36 Bruton Street W1 Lancer Property Management William & Son Q3 2015 13,000 – 71 41-42 Welbeck Street W1 Howard de Walden Estates Q3 2015 12,000 12,000

Total 250,000 181,000 Docklands Under Construction 72 1 Bank Street E14 Canary Wharf Société Générale Q1 2019 688,000 408,000 Total 688,000 408,000Docklands Completed

Total 0 0


Development table


No.

Scheme

Post code

Developer

Tenant

Completion date

Total space sq ft

Space available

sq ftKing's Cross Under Construction 73 Pivotal, 123 Pentonville Road N1 Monteagle Barlow Trust Ltd Houzz Q1 2016 26,000 – 74 Lighthouse, 283-297 Pentonville Road N1 UK Real Estate Ltd Q1 2016 16,500 16,500 75 Three Pancras Square N1C King's Cross Central Limited Partnership HAVAS Q2 2016 163,000 – 76 Four Pancras Square N1C King's Cross Central Limited Partnership Universal Music Q2 2017 170,000 – 77 R7 Handyside Street N1C King's Cross Central Limited Partnership Q2 2017 145,000 145,000

Total 520,500 161,500 King's Cross Completed Total 0 0Midtown Under Construction 78 12-14 New Fetter Lane EC4 Great Portland Estates Bird & Bird Q4 2015 142,500 – 79 77 Shaftesbury Avenue WC2 Dolford Property Holdings Bank of East Asia Q4 2015 59,000 47,000 80 Audit House, 58 Victoria Embankment EC4 FORE Partnership NESTA Q4 2015 48,000 – 81 Lacon House, 84 Theobalds Road WC1 Blackstone Q1 2016 215,000 215,000 82 Holborn Tower, 137-144 High Holborn WC1 Private overseas investor Q1 2016 25,000 25,000 83 Strand Bridge House, 138-142 Strand WC2 Banco de Oro Banco de Oro Q2 2016 21,000 –84 Bloomsbury Plaza, 2-8 Bloomsbury Street WC1 Friends Life Q2 2016 21,000 21,000 85 1 New Street Square EC4 Land Securities Deloitte Q3 2016 260,000 – 86 LSQ London, 48 Leicester Square WC2 Old Park Lane Management Q3 2016 95,000 95,000 87 98 Fetter Lane EC4 Blackstone/Morgan Capital Partners LLP Macfarlanes Q3 2016 59,500 – 88 28 Chancery lane EC4 Viridis Real Estate Q4 2016 100,000 100,000 89 The Cursitor Building, 35 Chancery Lane WC2 Aberdeen Asset Management and

Endurance Land Q4 2016 66,000 66,000

90 8 Salisbury Square EC4 Greycoat/Cheyne Capital Q1 2017 156,000 156,000 91 One Bedford Avenue/251-258 Tottenham

Court RoadWC1 Exemplar Properties Q1 2017 70,000 70,000

Total 1,338,000 795,000 Midtown Completed 92 Adelphi, 1-11 John Adam Street WC2 Blackstone ACCA Q3 2015 160,000 123,000 93 40 Chancery Lane WC2 Derwent London Publicis Groupe Q3 2015 97,000 –

Total 257,000 123,000 Paddington Under Construction 94 20 Eastbourne Terrace W2 Land Securities Q2 2016 93,000 93,000 95 4 Kingdom Street W2 British Land Q2 2017 132,000 132,000

Total 225,000 225,000 Paddington completed 0 0 Total 0 0Southbank Under Construction 96 South Bank Tower, Stamford Street SE1 Hermes/Canada Pension Fund Q2 2016 224,000 224,000 97 3 Valentine Place SE1 South Square/Gemaco Q3 2016 28,000 28,000

Total 252,000 252,000 Southbank Completed

0 0

Total 0 0

34

ABBEYROAD

B507

GROVE

EN

DR

OAD

LISSON GROVE

B507

BELSIZE ROAD

B509

ADELAIDE ROADB509

CHALKFARM

ROAD

EVERSHO

LTSTREET

A4200

SOUTHAM

PTON

ROW

KIN

GSW

AY

FINC

HLEY

RO

AD

A41

WELLINGTO

NRO

AD

AVEN

U

E ROAD

B525

ILBURNHIGH

ROAD

A5

MAIDA

VALE

EDGWARE

A5

CLIFTON

GS

STJO

HNS WOOD

ROADA

5205

PRINCE ALBERT ROAD

A5205

GLO

UC

ESTERPLA

CE

PALK

WAY

A503

CAMDEN

ROAD

PORTLA

ND

PL ACE

REGEN

TSTREET

HAYMA

RKET

(M )

A 40(M)A4 0(M ) MARYLEBONE FLYOVER

MARYLEBONE ROADA501

EUSTONROAD

A501

CALE

DO

NIA

NRO

AD

A52

03

D E LANCY STREET

CAM

DEN

STREET

HA

MPSTEA

DR

OA

D

TOTTEN

HA

MCO

URT

ROAD

CH

AR

ING

CR

OSS

ROA

D

COLLEG

ESTREET

STPA

NC

RASW

AY

YO

RKW

AYA

520 0Y

OR

KW

AY

GRA

Y'S

INN

ROA

D

PENTONVILLE ROAD A501

KIN

G'S

CR

O

SS ROADFARRINGDO

NRO

AD

LIVE

RPO

OL

RO

AD

B515

ROSEB

ERY

AV

ENU

E

GUILFORDSTREET

JUD

DSTREET

GOW

ERSTREET

BLOO

MSBU

RY

ENDELL ST

WATERLO

OBRID

GE

BLOOMSBURY

WAY

THEOBALDS ROAD

H O L BORN

HIGH HOLBORN

HOLBORN VIADUCT

ALDWYCH

STRAND

FLEETSTREET

FETT

ER

LAN

EH

ATT

ON

GD

N

SEYMOUR STWIGMORE STREET

MORT IMER

STREET

MA

RYLEBO

NE

HIG

HST

WH

ITEHA

LL

VIC

TOR

IAEM

BA

NK

MEN

TA32

11

EMBANKMENT A3

BAYSWATER ROADA40

BAYSWATER ROADA40

OXFORD STREET

OXFORD STREET

WESTBOURNEGROVE

CRAVENHILL

PRAED

STREE

T

A4205

PARK

LAN

EA

4202

PARK

LAN

EA

4202

ENSINGTON HIGH STREET A315 KENSINGTON GORE KNIGHTSBRIDGE A315

GLO

UC

ESTERR

OA

D

CROMWELL ROADA4

BROM

PTON

ROAD

A4

PO NTSTREET

SLO

AN

ESTR

EETA

3216LO

WER

SLOA

N

ESTREET

BELGRAVEPL

ECCLESTON ST

BELGRAVE ROADA3212

GRO

SVENO

RPL

A3217

KINGS ROAD

KINGS ROAD

A3217

EATO

NSQ

UARE

BRES

SENDEN

VICTORIA STREETA302

ROYA

LHO

SPIT

AL ROAD

PIMLICO RD

W A R WICK WAY

ROCH

ESTE

RRW

FULH

AMROAD

A308

ORO

UGHRO

AD

A3220

REDCLIFFE

GA

RDEN

S

EDITH

GRO

VE

LIE ROAD A3218O LD

BROMPT

ONRO

AD

ONSLOWSQ

SYD

NEY

STREET

OA

KLEY

STREET

CHEY

NE WALKA3212

CHELSEAEMBANKMENT

A3212 GROSVENOR ROAD

A3212

MIL

LBA

NK

MILLB

AN

K

VA

UXHALL BRIDGE ROAD

A202

VAUXHALL BRIDGE

SOU

THLA

MBE

TH

RO

AD

CH

ELSEAB

RID

GE

BATTERSEA

PARK

ROAD

NINE ELMS LANE

KENNINGTON LANE

KENNING

HARLEY RD

CAMBERWELL N

FENTMAN ROAD

CLA

PHA

MRD

KEN

NIN

GTO

A2 3

KEN

NIN

GTO

NR

OA

DA

23

THE C

STAMFORD STR

WATERLO

ORO

AWESTMINST ER BRIDGE

YORK

ROA

D

LAM

BETH

PALA

CERO

AD

WESTMINSTER BRIDGE

PARKROAD

A41

ALB

AN

YSTREE

TA

4201G

REA

TPO

RTLAN

DST

BA

KER

STREET

A41

WA

ND

SWO

RTH

RO

AD A

30

36

ALB

ERT

EMB

AN

KM

ENT

A30

36

LAMBETH ROADA3203

GR

EAT

SMITH

STM

AR

SHA

MST

A4

PICCADILLY

A4SH

AFTSB

URY

AVENU

E

GROSVENOR STREET BROOK STREET

CURZONST

EBU

RYBR

I.RD

BUCK

ING

HA

MPA

LAC

ER

OA

DBU

CKINGHAMGATE

BIRDCAGE WALK

SUSS

EXGS

A42

09

MOUNT ST

NEW

BOND

STREET

STJA

MES ST

PALL MALLA4

WA

RDO

UR ST

BISHOPS BRIDGE RD

KENN P

REGENT’S PARK

PRIMROSE HILL

KENSINGTONGARDENS

HYDE PARK

GREEN PARK ST JAMES'SPARK

BATTERSEA PARK

LAMBETHPALACE

RIVER THAMES

CompleteUnder construction

COMMERCIAL ROAD

A13 EAST INDIA DOCK ROAD

A13A102

BLAC

KW

ALL

TUN

NE

LBLACKW

ALL CROSSIN

GTU

NN

ELA

PPR

OA

CH

WE

STIN

DIA

DOCK RDA1261

ASPEN WAY A1261

ASP

EN

WAY

A1203

LIMEH

OU

SE

L I N K TUNNEL

A1200

WESTFER

RY

RO

AD

A120

0

WESTFERRY ROAD MANCHESTER

RO

AD

A12

06

CO

TTON

ST

PRESTO

N'S

RO

AD

BLACKWALL TUNNELA

102

B

LACKWALL TUNNEL

MARSH WALL

LIME

HA

RB

OU

REA

STFER

RY

ROAD

SPINDRIFT AVENUE

MILL

HA

RB

OU

R

MA

STM

A

K E R R D

T R A FA

LGA

R

W AY

SALTER

ROA

DB205

PLO U GHWAYG

RO

VE

STR

EET

ISLE OFDOGS

RIV

ER T

HA

MES

MILLWALLPARK

CANARY WHARF

SOUTH QUAY

CITY ROADA501

FAR

RIN

GD

ON

STB

LAC

KFR

IAR

SB

RG

BLA

CK

FRIA

RS

RO

AD

UPPER

STREEET

A1

STJO

HN

SSTR

EET

B501

NEWNO

RTHRO

AD

A1200

VESTRY

STC

ITY

RO

AD

A501

MO

OR

GA

TE

ESSEX

ROA

DA

104

SHEPH

ERD

ESSW

ALK

B144

BUN

HILL

RO

W

CHARTERHOUSE STREETBEECH STREET

GOSWELL

RO

AD

A1

NU

E

PERCIVAL STREET

A5201

PIT

FIE

LDS

TR

EET

NEWGATE

LONDON WALL

HOUNDSDITCH

INO

RIES

HILL3211 UPPER THAMES STREET

GTON LANE

NEWROAD

TON

PARK

ROA

DA

3

CUTUNION STREET

WA

LWO

RTHRO

AD

A215

CA

MB

ER

WE

LLR

OA

D

GEORGE ROAD

NEW KENT ROAD A201

OLDKENT

ROAD

O LD KE

BOROUGH RDHARPER

ROA

D

S OU

THW

ARK

BRID

GE

RO

AD

BORO

UG

HH

IGH

STR

EET

LON

DO

NB

RID

GE

REETSOUTHWARK ST A3200

AD

ROAD

SOU

THW

AR

KB

RID

GE

RO

AD

GREAT

DO

VERSTREET

LONG LANE

A2198

ABBEY STREET

TOOLEY STREET

JAMAICAROA

ST THOMAS ST

GRANGEROAD

DU

NTO

NRO

AD

ALBANY ROADB214

TRA

FALG

AR

AV

ENU

E

LOWER T HAMES STREETROYA

PRESCO

BER

MO

ND

SEYSTR

EET

BR

IDG

ER

OA

D

TOW

ERB

RID

GE

WHITECHAPEL

BR

ICK

LAN

EB

134

BETHNALGRE

OLD STREETC

HA

CKNEY

ALD

ERSG

ATE

EASTERNST

COM

MERCIA

LSTR

EET

TOW

ERBR

IDG

ERO

AD

LUDGATE HILL

QUEEN VICTORI A STREET

CHEAPSIDECORNHILL

GRESHAM ST

CANNON ST

LOTHBURY

THREADNEEDLE ST

GRA

CEC

HU

RCH

ST

BISH

OP

SGA

T EA

10

KIN

GSL

AN

DR

OA

DA

10

FENCHURCH STREET

M

OLD STREET

NINGTONPARK

BURGESS PARK

38

39

53

44

4846

92

93

83

90

23/27

7374

41

95

94

5659

42

47

4051

71

52

58 50

61

57

55

6079

9184

82

81

63

67

65

66

69

62

64

68

7086

43/45

49/54

76 75

77

80

8889

78

87

85

4

20

36

3

15

14

18

29

10

33

8

30

219

72

2

613

11 12

1724

227 1

5 19

26 28

25

1637

34/35

31/32

96

97

Under construction Completed


ABBEYROAD

B507

GROVE

EN

DR

OAD

LISSON GROVE

B507

BELSIZE ROAD

B509

ADELAIDE ROADB509

CHALKFARM

ROAD

EVERSHO

LTSTREET

A4200

SOUTHAM

PTON

ROW

KIN

GSW

AY

FINC

HLEY

RO

AD

A41

WELLINGTO

NRO

AD

AVEN

U

E ROAD

B525

ILBURNHIGH

ROAD

A5

MAIDA

VALE

EDGWARE

A5

CLIFTON

GS

STJO

HNS WOOD

ROAD

A52

05

PRINCE ALBERT ROAD

A5205

GLO

UC

ESTERPLA

CE

PALK

WAY

A503

CAMDEN

ROAD

PORTLA

ND

PL ACE

REGEN

TSTREET

HAYMA

RKET

(M )


MARYLEBONE ROADA501

EUSTONROAD

A501

CALE

DO

NIA

NRO

AD

A52

03

D E LANCY STREET

CAM

DEN

STREET

HA

MPSTEA

DR

OA

D

TOTTEN

HA

MCO

URT

ROAD

CH

AR

ING

CR

OSS

ROA

D

COLLEG

ESTREET

STPA

NC

RASW

AY

YO

RKW

AYA

520 0Y

OR

KW

AY

GRA

Y'S

INN

ROA

D


KIN

G'S

CR

O

SS ROADFARRINGDO

NRO

AD

LIVE

RPO

OL

RO

AD

B515

ROSEB

ERY

AV

ENU

E

GUILFORDSTREET

JUD

DSTREET

GOW

ERSTREET

BLOO

MSBU

RY

ENDELL ST

WATERLO

OBRID

GE

BLOOMSBURY

WAY

THEOBALDS ROAD

H O L BORN

HIGH HOLBORN

HOLBORN VIADUCT

ALDWYCH

STRAND

FLEETSTREET

FETT

ER

LAN

EH

ATT

ON

GD

N


MORT IMER

STREET

MA

RYLEBO

NE

HIG

HST

WH

ITEHA

LL

VIC

TOR

IAEM

BA

NK

MEN

TA32

11

EMBANKMENT A3

BAYSWATER ROADA40

BAYSWATER ROADA40

OXFORD STREET

OXFORD STREET

WESTBOURNEGROVE

CRAVENHILL

PRAED

STREE

T

A4205

PARK

LAN

EA

4202

PARK

LAN

EA

4202


GLO

UC

ESTERR

OA

D

CROMWELL ROADA4

BROM

PTON

ROAD

A4

PO NTSTREET

SLO

AN

ESTR

EETA

3216LO

WER

SLOA

N

ESTREET

BELGRAVEPL

ECCLESTON ST

BELGRAVE ROADA3212

GRO

SVENO

RPL

A3217

KINGS ROAD

KINGS ROAD

A3217

EATO

NSQ

UARE

BRES

SENDEN

VICTORIA STREETA302

ROYA

LHO

SPIT

AL ROAD

PIMLICO RD

W A R WICK WAY

ROCH

ESTE

RRW

FULH

AMROAD

A308

ORO

UGHRO

AD

A3220

REDCLIFFE

GA

RDEN

S

EDITH

GRO

VE

LIE ROAD A3218O LD

BROMPT

ONRO

AD

ONSLOWSQ

SYD

NEY

STREET

OA

KLEY

STREET

CHEY

NE WALKA3212

CHELSEAEMBANKMENT


A3212

MIL

LBA

NK

MILLB

AN

K

VA

UXHALL BRIDGE ROAD

A202

VAUXHALL BRIDGE

SOU

THLA

MBE

TH

RO

AD

CH

ELSEAB

RID

GE

BATTERSEA

PARK

ROAD

NINE ELMS LANE

KENNINGTON LANE

KENNING

HARLEY RD

CAMBERWELL N

FENTMAN ROAD

CLA

PHA

MRD

KEN

NIN

GTO

A2 3

KEN

NIN

GTO

NR

OA

DA

23

THE C

STAMFORD STR

WATERLO

ORO


YORK

ROA

D

LAM

BETH

PALA

CERO

AD

WESTMINSTER BRIDGE

PARKROAD

A41

ALB

AN

YSTREE

TA

4201G

REA

TPO

RTLAN

DST

BA

KER

STREET

A41

WA

ND

SWO

RTH

RO

AD A

30

36

ALB

ERT

EMB

AN

KM

ENT

A30

36

LAMBETH ROADA3203

GR

EAT

SMITH

STM

AR

SHA

MST

A4

PICCADILLY

A4

SHAFT

SBURY

AVENU

E


CURZONST

EBU

RYBR

I.RD

BUCK

ING

HA

MPA

LAC

ER

OA

DBU

CKINGHAMGATE

BIRDCAGE WALK

SUSS

EXGS

A42

09

MOUNT ST

NEW

BOND

STREET

STJA

MES ST

PALL MALLA4

WA

RDO

UR ST

BISHOPS BRIDGE RD

KENN P

REGENT’S PARK

PRIMROSE HILL

KENSINGTONGARDENS

HYDE PARK


BATTERSEA PARK

LAMBETHPALACE

RIVER THAMES


COMMERCIAL ROAD


A13A102

BLAC

KW

ALL

TUN

NE

LBLACKW

ALL CROSSIN

GTU

NN

ELA

PPR

OA

CH

WE

STIN

DIA

DOCK RDA1261

ASPEN WAY A1261

ASP

EN

WAY

A1203

LIMEH

OU

SE

L I N K TUNNEL

A1200

WESTFER

RY

RO

AD

A120

0

WESTFERRY ROAD MANCHESTER

RO

AD

A12

06

CO

TTON

ST

PRESTO

N'S

RO

AD

BLACKWALL TUNNELA

102

B

LACKWALL TUNNEL

MARSH WALL

LIME

HA

RB

OU

REA

STFER

RY

ROAD

SPINDRIFT AVENUE

MILL

HA

RB

OU

R

MA

STM

A

K E R R D

T R A FA

LGA

R

W AY

SALTER

ROA

DB205

PLO U GHWAYG

RO

VE

STR

EET

ISLE OFDOGS

RIV

ER T

HA

MES

MILLWALLPARK

CANARY WHARF

SOUTH QUAY

CITY ROADA501

FAR

RIN

GD

ON

STB

LAC

KFR

IAR

SB

RG

BLA

CK

FRIA

RS

RO

AD

UPPER

STREEET

A1

STJO

HN

SSTR

EET

B501

NEWNO

RTHRO

AD

A1200

VESTRY

STC

ITY

RO

AD

A501

MO

OR

GA

TE

ESSEX

ROA

DA

104

SHEPH

ERD

ESSW

ALK

B144

BUN

HILL

RO

W


GOSWELL

RO

AD

A1

NU

E

PERCIVAL STREET

A5201

PIT

FIE

LDS

TR

EET

NEWGATE

LONDON WALL

HOUNDSDITCH

INO

RIES


GTON LANE

NEWROAD

TON

PARK

ROA

DA

3

CUTUNION STREET

WA

LWO

RTHRO

AD

A215

CA

MB

ER

WE

LLR

OA

D

GEORGE ROAD

NEW KENT ROAD A201

OLDKENT

ROAD

O LD KE

BOROUGH RDHARPER

ROA

D

S OU

THW

ARK

BRID

GE

RO

AD

BORO

UG

HH

IGH

STR

EET

LON

DO

NB

RID

GE


AD

ROADSO

UTH

WA

RK

BR

IDG

ER

OA

D

GREAT

DO

VERSTREET

LONG LANE

A2198

ABBEY STREET

TOOLEY STREET

JAMAICAROA

ST THOMAS ST

GRANGEROAD

DU

NTO

NRO

AD

ALBANY ROADB214

TRA

FALG

AR

AV

ENU

E


PRESCO

BER

MO

ND

SEYSTR

EET

BR

IDG

ER

OA

D

TOW

ERB

RID

GE

WHITECHAPEL

BR

ICK

LAN

EB

134

BETHNALGRE

OLD STREETC

HA

CKNEY

ALD

ERSG

ATE

EASTERNST

COM

MERCIA

LSTR

EET

TOW

ERBR

IDG

ERO

AD

LUDGATE HILL


CHEAPSIDECORNHILL

GRESHAM ST

CANNON ST

LOTHBURY

THREADNEEDLE ST

GRA

CEC

HU

RCH

ST

BISH

OP

SGA

T EA

10

KIN

GSL

AN

DR

OA

DA

10

FENCHURCH STREET

M

OLD STREET

NINGTONPARK

BURGESS PARK

38

39

53

44

4846

92

93

83

90

23/27

7374

41

95

94

5659

42

47

4051

71

52

58 50

61

57

55

6079

9184

82

81

63

67

65

66

69

62

64

68

7086

43/45

49/54

76 75

77

80

8889

78

87

85

4

20

36

3

15

14

18

29

10

33

8

30

219

72

2

613

11 12

1724

227 1

5 19

26 28

25

1637

34/35

31/32

96

97

ABBEYROAD

B507

GROVE

EN

DR

OAD

LISSON GROVE

B507

BELSIZE ROAD

B509

ADELAIDE ROADB509

CHALKFARM

ROAD

EVERSHO

LTSTREET

A4200

SOUTHAM

PTON

ROW

KIN

GSW

AY

FINC

HLEY

RO

AD

A41

WELLINGTO

NRO

AD

AVEN

U

E ROAD

B525

ILBURNHIGH

ROAD

A5

MAIDA

VALE

EDGWARE

A5

CLIFTON

GS

STJO

HNS WOOD

ROAD

A52

05

PRINCE ALBERT ROAD

A5205

GLO

UC

ESTERPLA

CE

PALK

WAY

A503

CAMDEN

ROAD

PORTLA

ND

PL ACE

REGEN

TSTREET

HAYMA

RKET

(M )


MARYLEBONE ROADA501

EUSTONROAD

A501

CALE

DO

NIA

NRO

AD

A52

03

D E LANCY STREET

CAM

DEN

STREET

HA

MPSTEA

DR

OA

D

TOTTEN

HA

MCO

URT

ROAD

CH

AR

ING

CR

OSS

ROA

D

COLLEG

ESTREET

STPA

NC

RASW

AY

YO

RKW

AYA

520 0Y

OR

KW

AY

GRA

Y'S

INN

ROA

D


KIN

G'S

CR

O

SS ROADFARRINGDO

NRO

AD

LIVE

RPO

OL

RO

AD

B515

ROSEB

ERY

AV

ENU

E

GUILFORDSTREET

JUD

DSTREET

GOW

ERSTREET

BLOO

MSBU

RY

ENDELL ST

WATERLO

OBRID

GE

BLOOMSBURY

WAY

THEOBALDS ROAD

H O L BORN

HIGH HOLBORN

HOLBORN VIADUCT

ALDWYCH

STRAND

FLEETSTREET

FETT

ER

LAN

EH

ATT

ON

GD

N


MORT IMER

STREET

MA

RYLEBO

NE

HIG

HST

WH

ITEHA

LL

VIC

TOR

IAEM

BA

NK

MEN

TA32

11

EMBANKMENT A3

BAYSWATER ROADA40

BAYSWATER ROADA40

OXFORD STREET

OXFORD STREET

WESTBOURNEGROVE

CRAVENHILL

PRAED

STREE

T

A4205

PARK

LAN

EA

4202

PARK

LAN

EA

4202


GLO

UC

ESTERR

OA

D

CROMWELL ROADA4

BROM

PTON

ROAD

A4

PO NTSTREET

SLO

AN

ESTR

EETA

3216LO

WER

SLOA

N

ESTREET

BELGRAVEPL

ECCLESTON ST

BELGRAVE ROADA3212

GRO

SVENO

RPL

A3217

KINGS ROAD

KINGS ROAD

A3217

EATO

NSQ

UARE

BRES

SENDEN

VICTORIA STREETA302

ROYA

LHO

SPIT

AL ROAD

PIMLICO RD

W A R WICK WAY

ROCH

ESTE

RRW

FULH

AMROAD

A308

ORO

UGHRO

AD

A3220

REDCLIFFE

GA

RDEN

S

EDITH

GRO

VE

LIE ROAD A3218O LD

BROMPT

ONRO

AD

ONSLOWSQ

SYD

NEY

STREET

OA

KLEY

STREET

CHEY

NE WALKA3212

CHELSEAEMBANKMENT


A3212

MIL

LBA

NK

MILLB

AN

K

VA

UXHALL BRIDGE ROAD

A202

VAUXHALL BRIDGE

SOU

THLA

MBE

TH

RO

AD

CH

ELSEAB

RID

GE

BATTERSEA

PARK

ROAD

NINE ELMS LANE

KENNINGTON LANE

KENNING

HARLEY RD

CAMBERWELL N

FENTMAN ROAD

CLA

PHA

MRD

KEN

NIN

GTO

A2 3

KEN

NIN

GTO

NR

OA

DA

23

THE C

STAMFORD STR

WATERLO

ORO


YORK

ROA

D

LAM

BETH

PALA

CERO

AD

WESTMINSTER BRIDGE

PARKROAD

A41

ALB

AN

YSTREE

TA

4201G

REA

TPO

RTLAN

DST

BA

KER

STREET

A41

WA

ND

SWO

RTH

RO

AD A

30

36

ALB

ERT

EMB

AN

KM

ENT

A30

36

LAMBETH ROADA3203

GR

EAT

SMITH

STM

AR

SHA

MST

A4

PICCADILLY

A4

SHAFT

SBURY

AVENU

E


CURZONST

EBU

RYBR

I.RD

BUCK

ING

HA

MPA

LAC

ER

OA

DBU

CKINGHAMGATE

BIRDCAGE WALK

SUSS

EXGS

A42

09

MOUNT ST

NEW

BOND

STREET

STJA

MES ST

PALL MALLA4

WA

RDO

UR ST

BISHOPS BRIDGE RD

KENN P

REGENT’S PARK

PRIMROSE HILL

KENSINGTONGARDENS

HYDE PARK


BATTERSEA PARK

LAMBETHPALACE

RIVER THAMES


COMMERCIAL ROAD


A13A102

BLAC

KW

ALL

TUN

NE

LBLACKW

ALL CROSSIN

GTU

NN

ELA

PPR

OA

CH

WE

STIN

DIA

DOCK RDA1261

ASPEN WAY A1261

ASP

EN

WAY

A1203

LIMEH

OU

SE

L I N K TUNNEL

A1200

WESTFER

RY

RO

AD

A120

0W

ESTFERRY ROAD MANCHESTER

RO

AD

A12

06

CO

TTON

ST

PRESTO

N'S

RO

AD

BLACKWALL TUNNELA

102

B

LACKWALL TUNNEL

MARSH WALL

LIME

HA

RB

OU

REA

STFER

RY

ROAD

SPINDRIFT AVENUE

MILL

HA

RB

OU

R

MA

STM

A

K E R R D

T R A FA

LGA

R

W AY

SALTER

ROA

DB205

PLO U GHWAYG

RO

VE

STR

EET

ISLE OFDOGS

RIV

ER T

HA

MES

MILLWALLPARK

CANARY WHARF

SOUTH QUAY

CITY ROADA501

FAR

RIN

GD

ON

STB

LAC

KFR

IAR

SB

RG

BLA

CK

FRIA

RS

RO

AD

UPPER

STREEET

A1

STJO

HN

SSTR

EET

B501

NEWNO

RTHRO

AD

A1200

VESTRY

STC

ITY

RO

AD

A501

MO

OR

GA

TE

ESSEX

ROA

DA

104

SHEPH

ERD

ESSW

ALK

B144

BUN

HILL

RO

W


GOSWELL

RO

AD

A1

NU

E

PERCIVAL STREET

A5201

PIT

FIE

LDS

TR

EET

NEWGATE

LONDON WALL

HOUNDSDITCH

INO

RIES


GTON LANE

NEWROAD

TON

PARK

ROA

DA

3

CUTUNION STREET

WA

LWO

RTHRO

AD

A215

CA

MB

ER

WE

LLR

OA

D

GEORGE ROAD

NEW KENT ROAD A201

OLDKENT

ROAD

O LD KE

BOROUGH RDHARPER

ROA

D

S OU

THW

ARK

BRID

GE

RO

AD

BORO

UG

HH

IGH

STR

EET

LON

DO

NB

RID

GE


AD

ROAD

SOU

THW

AR

KB

RID

GE

RO

AD

GREAT

DO

VERSTREET

LONG LANE

A2198

ABBEY STREET

TOOLEY STREET

JAMAICAROA

ST THOMAS ST

GRANGEROAD

DU

NTO

NRO

AD

ALBANY ROADB214

TRA

FALG

AR

AV

ENU

E


PRESCO

BER

MO

ND

SEYSTR

EET

BR

IDG

ER

OA

D

TOW

ERB

RID

GE

WHITECHAPEL

BR

ICK

LAN

EB

134

BETHNALGRE

OLD STREETC

HA

CKNEY

ALD

ERSG

ATE

EASTERNST

COM

MERCIA

LSTR

EET

TOW

ERBR

IDG

ERO

AD

LUDGATE HILL


CHEAPSIDECORNHILL

GRESHAM ST

CANNON ST

LOTHBURY

THREADNEEDLE ST

GRA

CEC

HU

RCH

ST

BISH

OP

SGA

T EA

10

KIN

GSL

AN

DR

OA

DA

10

FENCHURCH STREET

M

OLD STREET

NINGTONPARK

BURGESS PARK

38

39

53

44

4846

92

93

83

90

23/27

7374

41

95

94

5659

42

47

4051

71

52

58 50

61

57

55

6079

9184

82

81

63

67

65

66

69

62

64

68

7086

43/45

49/54

76 75

77

80

8889

78

87

85

4

20

36

3

15

14

18

29

10

33

8

30

219

72

2

613

11 12

1724

227 1

5 19

26 28

25

1637

34/35

31/32

96

97

Definitions

Time period: April 2015 – September 2015

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 To view the London development website visit: www.newlondondevelopment.com

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 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 Office Crane Survey data now added. www.deloitte.co.uk/newlondonapp

36

Notes

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.

© 2015 Deloitte LLP. All rights reserved.

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. J3211

www.deloitte.co.uk/cranesurvey

ContactsCity

Steve Johns Director 020 7303 [email protected]

West End

Rhodri PhillipsDirector020 7007 [email protected]

Occupiers

Chris LewisPartner020 7303 [email protected]

Author

Shaun DawsonResearch Manager020 7303 [email protected]

Investment

Jamie OlleyPartner020 7007 [email protected]

Will MatthewsHead of Real Estate Research020 7303 [email protected]

Author

http://www.deloitte.co.uk/cranesurvey

London Office Crane Survey Construction activity boost · Crane Survey results Construction volumes up The total volume of office space under construction is at a seven-year high

Documents