Central London Development Pipeline Q2 2017 Development Completions -
As at Q2 2017, there is 9.45m sq ft of available space under construction across Central London. 1.32 million sq ft of office space completed in Q2 2017, adding 710,000 sq ft of available office space to the market.
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For future 2017 development completions, 49% of the space is prelet, rising to 55% for 2018.
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10% of space has been prelet for 2019 completions, the low figure being largely the result of the commencement of 22 Bishopsgate adding 1.275m sq ft of availability to the market.
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Total take-up by prelets in Q2 2017 equalled 520,000 sq ft, 17 % of total take-up in the quarter. The largest prelet of the quarter was to WeWork at Two Southbank Place, taking 280,000 sq ft. In the third largest letting of the quarter, NEX took 120,000 sq ft at London Fruit & Wool Exchange.
Development Pipeline - Completion Year Oversite developments at Crossrail stations are projected to begin construction following ticket office completion. The oversite developments are projected to complete in 2020.
7,000,000 6,000,000
Sq Ft
5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 2017
2018
Available Office Sq Ft (NIA)
2019
2020
Let Office Sq Ft (NIA)
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The most active market is City Core with 7.98m sq ft of proposed office space under construction. City Fringe, Midtown and West End have 1.74m, 2.47m, & 1.70m sq ft of space under construction respectively.
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The market with the highest percentage of prelets is Southbank with only 19% of under construction space still available. This can be partly attributed to the prelet of the entirety of Two Southbank Place. The market with the largest amount of prelet space is City Core with 3.11 million sq ft.
Development Pipeline - Submarket 9,000,000 The most active West End submarket is Paddington, with 404,893 sq ft of total space under construction.
8,000,000 7,000,000
Sq Ft
6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 City Core
City Fringe
Docklands
Available Office Sq Ft (NIA)
Midtown
Southern Fringe
Let Office Sq Ft (NIA)
West End
Under Construction Pipeline (Top 10 developments by available sq ft)
Address
Market
Completion Quarter
Completion Year
Available Sq Ft (Total Sq Ft)
Landlord
22 Bishopsgate
City Core
Q4
2019
1,275,000 (1,275,000)
Temasek/AXA/PSP Invsestments/BCI M
100 Liverpool Street
City Core
Q4
2019
520,000 (520,000)
British Land/GIC
1 Bank Street
Docklands
Q1
2019
420,000 (420,000)
Canary Wharf Group
70 St Mary Axe
City Core
Q4
2018
310,000 (310,000)
TH Real Estate
1 Finsbury Avenue
City Core
Q1
2019
280,000 (280,000)
British Land/GIC
The Scalpel, 52 Lime Street
City Core
Q4
2017
260,000 (390,000)
WR Berkley
100 Bishopsgate
City Core
Q4
2018
250,000 (870,000)
Brookfield
Brunel Building, North Wharf Road
West End
Q1
2019
240,000 (240,000)
Derwent London
Eighty Fenchurch
City Core
Q3
2019
240,000 (240,000)
Exemplar/Partners Group
3 Minster Court
City Core
Q4
2017
220,000 (220,000)
Ivanhoe Cambridge/FREO/ Greycoat
Contact us Fiona Don London Office Analyst
[email protected] Tel: +44 (0)20 7318 4786 Copyright Strutt & Parker, 2017. All rights reserved. No part of this publication may be reproduced or transmitted in any form without prior written consent by Strutt & Parker. The information contained herein is general in nature and is not intended, and should not be construed, as professional advice or opinion provided to the user, nor as a recommendation of any particular approach. It is based on material that we believe to be reliable. Whilst every effort has been made to ensure its accuracy, we cannot offer any warranty that it contains no factual errors.
