Office construction in London has risen to its highest level since the financial crisis as property developers take advantage of the growing demand for office space in the capital.
Companies in the technology, media and telecoms sector, have the largest demand for commercial space, leasing nearly 50 percent of space currently under construction. Many of these companies are based in the northern end of the city in an area often known as the ‘tech belt’. The Deloitte Real Estate’s London Office Crane Survey shows that 81 percent of office space completed in this area over the last six months was let prior to completion.
Steve Johns, head of City leasing at Deloitte Real Estate said the introduction of Crossrail has benefited commercial developers, and cranes will be dominating the London skyline for the foreseeable future.
Property developers are responding to increasing corporate demand after the economic recovery which has resulted in work in the City being up by a quarter giving a total of 11 million square foot currently under construction. The Crane Survey has recorded 26 new schemes under construction bringing the current total to 77 schemes.
Will Matthews, head of research at Deloitte said that pressures on rental levels looked likely to continue in the short term as the demand for space increases.