London offices get facelift in lockdown despite pandemic
New construction starts in London have jumped by one-fifth in the six months to March 2021, despite the pandemic and changing working practices, research by Deloitte has found.
New office starts are up to 3.1 million square feet, Deloitte found, with 32 new schemes breaking ground during the six months.
More than half (56%) of this new construction pipeline is expected to involve an extensive upgrade of existing stock, Deloitte said.
Deloitte director in real estate Mike Cracknell said: “Many existing office buildings are capable of being turned into Covid-safe and high-quality workspaces, so it is unsurprising that developers are following the more sustainable path of refurbishments.
“Occupiers’ needs are shifting and buildings that meet their ESG principles while taking into account the welfare of their people are top of mind. Grade A, well-connected and eco-friendly office spaces, designed to maximise the benefits of new ways of working, will be the most desirable.”
Some 4.5 million square feet of development was delivered between October 2020 and March 2021, the highest level of completions in 18 years, with 59 per cent being pre-let.
However, the volume of new offices in construction has dropped nine per cent in the six months to 13.7 million square feet.
“With more than half (57%) of developers looking to increase construction pipelines in the next six months, central London office construction is very much alive,” Cracknell continued.
“Developers are increasingly focused on providing the best-in-class office accommodation that reflects the evolving needs of the post-COVID workforce.”