London Office Crane Survey Growing confidence · 2020-05-13 · Crane Survey London Office Winter 2013 3 Development in the central London office market continues apace with 28 new

London Office Crane SurveyGrowing confidence

Winter 2013A Deloitte Insight report

2

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

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

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

West EndSouthbankPaddingtonMidtownKing’s CrossDocklandsCity

Crane Survey London Office Winter 2013 3

Development in the central London office market continues apace with 28 new schemes starting since our last survey and the highest volume of space completing for over three years.

Construction in the City has risen for the sixth consecutive report, and has now reached the highest point for over five years. The Midtown market is also seeing strong activity, with development up 47%, on the back of a rise of 20% in our last report.

Interestingly, despite robust levels of tenant demand, the West End has seen construction fall. Activity is down 36% on just six months ago, due, in part at least, to a seven year high in scheme completions this year. The upshot is that construction in the West End has fallen to its lowest point in three years.

These divergent trends, combined with a number of significant completions over the last six months, mean that the total volume of office space under construction across central London has remained flat. This survey has recorded 9.7 million sq ft currently being built: a 1% fall on the results of six months ago.

Positively for developers, occupational demand for 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.

This mirrors current data which shows that more deals are completing in the London office market and take-up of Grade A space is now running above long-term average levels.

Importantly, the market has begun to see the re-emergence of demand from larger occupiers. The average letting deal at schemes recorded in this survey is 83,000 sq ft, more than double that of 12 months ago. The growth in occupier demand is also evident when looking at the volume of space which has been let prior to completion of the development in this survey: of the 2.6 m sq ft that has finished over the last six months, only 1 million sq ft (43%) remains vacant. These dynamics will continue to fuel the confidence being shown by investors and spur additional development activity.

It is our view that the market is entering a period of stronger pre-letting activity, with developers increasingly able to attract tenant commitments ahead of a construction start. Indeed, analysing these latest results and market sentiment, and looking at the number of sites which have all the elements ready to start construction, we expect the number of new projects to continue to grow over the coming months.

Market by numbers

28 new construction starts

9.7m sq ft

2.6m sq ft

of office space under construction

35% of space under construction is let

71Total number of development schemes

‑1%Change in construction activity on six months ago

Completed office space in the past six months totals

This survey records growing confidence from both developers and occupiers.

4

The City

Development pipeline

Million sq ft

Completed Available U/C Let U/C

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

201620152014201320122011201020092008200720062005200420032002

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 months. With nine new starts totalling 1.3 million sq ft, total development has exceeded 5 million sq ft for the first time since 2009. Activity has picked up from the record low volumes seen in 2010, but still remains some way below the recent peak of 8.2 million sq ft recorded in this survey in 2008.

This increase in construction is a direct result of improving sentiment regarding the City of London office market. Developer confidence has been buoyed by reducing levels of available Grade A space (now at a five year low, having fallen from 4.0 m sq ft in mid-2009 to 1.4 m sq ft today). The consequence of this fall is that supply shortages are beginning to be seen in a number of unit sizes and locations. For example, our database shows just four completed buildings now 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.

Indeed, over the last six months a growing number of deals have completed on whole buildings rather than a floor-by-floor basis and we predict that Grade A take-up for 2013 will reach its highest level for three years. It is worth noting, however, there remains a much lower level of activity in the smaller size bands as companies without large scale lease events continue to exercise caution.

Despite this, current supply and demand dynamics are beginning to filter through into rental growth, with August recording the first increase in City prime rents (based on an average 10,000 sq ft mid-floor) over three years: up 3% to £57.50 per sq ft. The range of rents being paid for new buildings continues to vary substantially depending on location, specification and size (including height) but with pressure on these prime rents to rise we expect further increases to follow.


The results of the latest survey show that the reducing 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 increasingly likely that the City market will experience an increasingly tight volume of supply of larger units 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 projects into 2015 and new-builds into 2016 and 2017.

The City – volume under construction %

Let U/C Available U/C

41%

59%

The City – number of new starts per Crane Survey

2013 Q32013 Q12012 Q3 2012 Q1 2011 Q32011 Q12010 Q3

0

5

7

9

3

9

13

Market by numbers


5.1m sq ft

647k sq ft


222k sq ft average size of a scheme


15%Construction activity up on six months ago by


6

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 number recorded six months ago and an addition of 400,000 sq ft to the development pipeline. However, this has not been enough to offset the large amount of space completed this year. 2013 will see 1.5 million sq ft of office space delivered into the West End, which is, by some margin, the largest amount to be completed since 2005. Of this, the majority (1.2 million sq ft) has finished over the last six months. As a result, construction has fallen by 36% since our last survey. With just 1.5 million sq ft underway, development activity is now at the lowest level since 2010.

This comes at a time when West End Grade A availability has reached its highest point for seven years. Does this development slowdown therefore reflect concerns of oversupply? We do not believe so. Availability data has been boosted by the completion of a few large schemes in recent quarters and so, while this may temper rental growth in some locations, it is not reflective of the shortages that are apparent in others.

Importantly, only a third of the floorspace completed in this survey is still available. The rest has been snapped up by a mix of financial, professional and TMT occupiers pre-completion. The slowdown in development is therefore more likely to relate to the lack of sites for office development than oversupply.

Another factor lessening the potential for oversupply is that the focus of new construction activity has shifted away from the recent development hotspots of Victoria and North of Oxford Street, with 70% of the new space recorded this survey being built in Mayfair & St James’s. In total, 42% of space under construction in the West End is now concentrated in this market, as opposed to just 23% twelve months ago.

It appears this shift in the location of activity is not due to a lack of tenant demand for units in Victoria or North of Oxford Street, which continue to see interest from a range of tenant sectors, but rather the return of demand for super-prime space from hedge funds, private equity and wealth management businesses.

Development pipeline

Million sq ft


0.0

0.5

1.0

1.5

2.0

2.5

20152014201320122011201020092008200720062005200420032002


The West End – volume under construction %

Let U/C Available U/C

97%

3%

This has been reflected in the high rents being paid, with 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. 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 the rising availability. Factor in the continued removal of stock for residential conversion and the West End 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

2013 Q32013 Q12012 Q3 2012 Q1 2011 Q32011 Q12010 Q3

3

13

8 8

5

1010

Market by numbers


1.5m sq ft

1.2m sq ft


65k sq ft average size of a scheme


‑36%Completed office space in the past six months totals

Change in construction activity on six months ago

8

Midtown

Activity increases further in Midtown.

This latest survey records a 47% rise in Midtown construction to 1.1 million sq ft. This follows a 20% upturn six months ago: development activity in Midtown is clearly growing rapidly! There have been eight new starts this survey, totalling 554,000 sq ft. So why are developers so keen to build here?

There are three main reasons: low availability, strong tenant demand and, for the northern part of the market at least, Crossrail. Alongside this longer-term promise of greatly improved connectivity, the underlying market fundamentals are clearly very appealing for developers at the present time.

Combining the new starts with the existing space under construction means that one million sq ft is scheduled for completion before 2015, almost three times the average annual volume of Grade A take-up. However, availability of existing supply is at a six year low, while take-up is running at double its average rate, therefore this amount of space completing looks like good news for occupiers with active requirements. Demand is primarily coming from the legal sector, but there have also been significant transactions from the ‘footloose’ media and technology sectors.

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

8 new constructionstarts

1.1m sq ft

206k sq ft14 schemes currently under development

76k sq ftAverage size of a scheme

51%Construction activity is up on six months ago




Southbank

Market by numbers

1new constructionstart

731k sq ft

468k sq ft

‑26%Completed office space in the past six months totals

Early‑letting activity continues at pace on the Southbank.

Take-up of office space on the Southbank in 2013 is already more than double the 10 year average, with the buoyant media and technology sectors accounting for two thirds of these deals.

The majority of this demand is for new Grade A space: The Place, London Bridge completed this survey, fully let to News International; Sea Containers which completes 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.

The survey has recorded one new construction start, South Bank Tower, which will deliver 217,000 sq ft of new space in 2015 and is, at the moment, the only site scheduled for completion post 2014. With construction activity falling this survey (down 26%) and letting activity on Grade A space running significantly above average, we expect further interest from developers in this hot London submarket


244k sq ftAverage size of a scheme

3 schemes currently under development

Change in construction activity on six months ago

10

King’s Cross

After a flurry of new starts six months ago there has been no new development activity since our last survey. 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, with a number of pre-lets in place and new tenants agreeing terms on buildings already underway. Indeed, our research shows that less than 40% of this space is 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 granting planning consent in September. Construction is scheduled to start on the 2.4-acre site in early 2014 with completion scheduled for 2016.

Market by numbers: King’s Cross

0

2%

new constructionstarts

782k sq ft

7 schemes under construction


decrease in construction volume in six months

Construction levels flat, but appetite from occupiers continues.


DocklandsCanary Wharf Group’s 25 Churchill Place remains under 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, leaving 290,000 sq ft of space available to let.

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.

Other markets

Market by numbers: Docklands

Market by numbers: Paddington

0

0

0%

0%



increase in construction volume in six months

increase in construction volume in six months

1 scheme under construction

0 completed in the last six months

0 schemes under construction

540k sq ftof office space under construction

PaddingtonThere have been no office construction starts in Paddington since the last survey, which saw the completion of Summit House on Praed Street. However, Paddington has featured heavily in the property press over the last six months due to British Land’s acquisition of the majority of Paddington Central, the 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 offices.

12

Capital markets

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

Investment demand for central London office stock remains very healthy, with £12bn of transactions taking place during the first three quarters of the year. As was the case six months ago, much of this activity has been from a wide variety of overseas investors, attracted by a range of factors including the safety and liquidity of the market, and the scope for capital preservation. In addition, recent months have seen the re-emergence of interest from UK property companies, funds, and institutions, who have, until now, been largely absent from the market.

With a significant weight of both overseas and domestic capital targeting a limited supply of assets, central London office yields have begun to approach pre-crisis lows: prime yields in the City currently stand at 4.50% with West End yields at 3.75%. The relative lack of new construction during the past few years has only served to exacerbate the scarcity of prime stock, adding to the downward pressure on yields.

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.

Despite compelling reasons to develop, however, for those reliant on finance, the environment remains significantly more difficult than it was pre-crisis. Nevertheless, while permitted loan to cost ratios are now lower, and the process of obtaining development finance still difficult, the availability of bank debt is gradually improving. In addition, some developers are utilising other ways to raise finance, either via joint ventures, alternative lenders, or through the issue of bonds.

Fundamentally, however, the signs of recovery seen in central London’s occupier market, coupled with continued investor interest, means that capital providers are gradually becoming comfortable with one of the key risk factors in the development process – tenant demand. This should lower one of the hurdles to raising finance for further development activity. Consequently, we envisage a continuation of the strong investment demand seen for existing assets, as well as for potential development sites.


Key office developers (by amount of space under construction)

1. Land Securities

2. Canary Wharf Group

3. British Land

4. Stanhope

5. King’s Cross Central Limited Partnership

6. Blackstone

7. Exemplar

8. Bloomberg

9. Aldgate Development

10. Kato Kagaku & Co

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

1. Land Securities

2. Canary Wharf Group

3. Exemplar

4. Aldgate Developments

5. Kato Kagaku & Co

6. Resolution Property

7. British Land

8. CIT

9. Quadrant Estates

10. London & Regional Properties

The London Office Crane Survey Winter 2013

WHY MEASURE CRANE ACTIVITY?

HEADLINE RESULTS

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.

Leasing activity on space under construction

FIVE LARGEST AVAILABLE BUILDINGS UNDER CONSTRUCTION

ALDGATE TOWER 1&2 FITZROY PLACE1&2 NEW LUDGATE

1 2 3 4

GOVERNMENT4%

CHARITY0.3%

INSURANCE21%

CORPORATE 9%

TMT38%

DOWNLOAD THE NEW LONDON APP

www.deloitterealestate.co.uk

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 CraneSurvey data now added. www.deloitterealestate.co.uk/newlondonapp

0PADDINGTON

5,134,000CITY

1,061,000MIDTOWN

540,000DOCKLANDS

731,000SOUTHBANK

Office space under construction in sq ft

9,709,000TOTAL

25 CHURCHILL PLACE

5

INCREASING LEASING ACTIVITY ON COMPLETED SPACE

let28%

available72%

let56%

available44%

2012 q3 2013 q3

20 FENCHURCH ST

1,461,000WEST END

782,000KING’S CROSS

NUMBER OF CONSTRUCTION STARTS ACROSS CENTRAL LONDON

71SCHEMES UNDERCONSTRUCTION

9.7mOF OFFICES UNDER CONSTRUCTIONSQ

FT

AVERAGE SIZE OF SCHEME

CITY223K SQ FT

WEST END64K SQ FT

HIGHEST LEVEL OF COMPLETED SPACE IN

3YEARS

FINANCIAL27%

TODAY

28LOW

4(2012)

HIGH

37(2007)

AVERAGE

19

14

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 sentiment, a mood of greater optimism has fed through into higher levels of take-up in central London’s office market. In addition, there has been a continued shift in the source of tenant demand, with technology, media and telecoms businesses and the professional sector being the most active, in place of financial services.

The upshot of the improving occupier market is that, with recent years delivering low volumes of new office space, availability has started to fall. Indeed, some markets, such as Midtown and the City, are now experiencing Grade A availability at the lowest level for over five years.

These are clearly positive trends for those developers already building space, as well as those that might be about to begin. The latest survey reflects this, with a flurry of new starts recorded, and development volumes remaining at a four year high.

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.

Indeed, signficant leasing success has been recorded on the space which has completed construction in this survey, only a third has come to the market available to let – the remainder was taken by occupiers whilst construction was still underway. This is a marked increase from twelve months ago, when 72% was available upon completion. With this trend expected to continue, the amount of available space completing in 2014 will reduce further over the next six months.

These dynamics are likely to put upward pressure on rents, following a number of years where little movement has been seen, albeit some markets and building types will perform significantly better than others. This expectation of growth, along with continued appetite from investors for prime stock and forecasts promising a further improvement in the economy, is likely to entice developers to begin new schemes in favoured locations over the next 6-12 months, both on a speculative basis and, increasingly, driven by the return of pre-letting activity.


The London Office Crane Survey Winter 2013

WHY MEASURE CRANE ACTIVITY?

HEADLINE RESULTS

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.

Leasing activity on space under construction

FIVE LARGEST AVAILABLE BUILDINGS UNDER CONSTRUCTION

ALDGATE TOWER 1&2 FITZROY PLACE1&2 NEW LUDGATE

1 2 3 4

GOVERNMENT4%

CHARITY0.3%

INSURANCE21%

CORPORATE 9%

TMT38%

DOWNLOAD THE NEW LONDON APP

www.deloitterealestate.co.uk

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 CraneSurvey data now added. www.deloitterealestate.co.uk/newlondonapp

0PADDINGTON

5,134,000CITY

1,061,000MIDTOWN

540,000DOCKLANDS

731,000SOUTHBANK

Office space under construction in sq ft

9,709,000TOTAL

25 CHURCHILL PLACE

5

INCREASING LEASING ACTIVITY ON COMPLETED SPACE

let28%

available72%

let56%

available44%

2012 q3 2013 q3

20 FENCHURCH ST

1,461,000WEST END

782,000KING’S CROSS

NUMBER OF CONSTRUCTION STARTS ACROSS CENTRAL LONDON

71SCHEMES UNDERCONSTRUCTION

9.7mOF OFFICES UNDER CONSTRUCTIONSQ

FT

AVERAGE SIZE OF SCHEME

CITY223K SQ FT

WEST END64K SQ FT

HIGHEST LEVEL OF COMPLETED SPACE IN

3YEARS

FINANCIAL27%

TODAY

28LOW

4(2012)

HIGH

37(2007)

AVERAGE

19

Central London development pipeline

Million sq ft


0

1

2

3

4

5

6

7

8

9

10

201620152014201320122011201020092008200720062005200420032002

16

No. SchemePost code Developer Tenant

Completion date

Total space sq ft

Space available sq ft

Paddington – Under ConstructionTotal 0 0

Paddington – CompletedTotal 0 0

West End Under Construction1 39 Victoria Street SW1 British Land Q4 2013 88,000 88,0002 149‑151 Oxford Street W1 AXA REIM Q4 2013 10,000 10,0003 Marble Arch House W1 British Land/Portman Estate Q4 2013 60,000 60,0004 33 Davies Street W1 Grosvenor Estates/Stow Q4 2013 27,000 27,0005 1‑2 Stephen Street (Phase 1) W1 Derwent London BrandOpus LLP Q4 2013 23,000 5,0006 Charlotte House, 11‑14 Windmill Street W1 Bramblewell Ltd The Mill Q4 2013 29,000 07 5 St James’s Square SW1 Exemplar Q1 2014 15,000 15,0008 6 St James’s Square SW1 Exemplar Q1 2014 115,000 115,0009 10 New Burlington Street W1 Exemplar/Crown Estate Q1 2014 97,000 97,00010 106 Brompton Road SW1 Cheval Group Q1 2014 10,000 10,00011 Walmar House, 288‑300 Regent Street W1 Great Portland Estates Q1 2014 54,000 54,00012 11 Soho Street W1 Dukelease Properties/British

Airways Pension TrustQ1 2014 17,000 17,000

13 28‑29 Savile Row W1 Allied London Q1 2014 15,000 15,00014 1‑2 Stephen Street (Phase 2) W1 Derwent London Q2 2014 63,000 63,00015 8 St James Square SW1 Green Property Q2 2014 65,000 65,00016 1 & 2 Fitzroy Place W1 Exemplar/Aviva/Kaupthing

BankQ3 2014 310,000 310,000

17 18 Grosvenor Street W1 Grosvenor Estates Q3 2014 40,000 40,00018 Carnaby Court 2, 22‑25 Kingly Street W1 Shaftesbury Carnaby Q3 2014 13,000 13,00019 69 Grosvenor Street W1 Grosvenor Estates Q4 2014 15,000 15,00020 Ampersand, 180 Wardour Street W1 Resolution Property Q4 2014 64,000 64,00021 55 St James’s Street SW1 Lothbury Investment Managers Q1 2015 23,000 23,00022 Zig Zag Building, Victoria Street SW1 Land Securities Q2 2015 188,000 188,00023 1 New Burlington Place W1 Exemplar/Crown Estate Q4 2015 120,000 120,000

Total 1,461,000 1,414,000West End Completed24 62 Buckingham Gate SW1 Land Securities World Fuel Services, Schlumberger, Rolls

RoyceQ2 2013 255,000 130,000

25 17‑23 Bentinck Street W1 Howard de Walden Estates Q2 2013 35,000 35,00026 10 Portman Square W1 British Land Saudi Aramco, Aspect Capital Q2 2013 114,000 55,00027 30 Brock Street, Regents Place NW1 British Land Q2 2013 21,000 21,00028 10 Brock Street, Regent’s Place NW1 British Land Debenhams Plc, Manchester City Ltd,

Whitefoord LLP, Facebook, TwitterQ2 2013 320,000 25,000

29 95 Wigmore Street W1 Great Portland Estates Lane Clark & Peacock, Pyrford International, Bridgepoint Advisers

Q3 2013 99,000 28,000

30 30 Berkeley Square W1 Philips de Pury Philips de Pury Q3 2013 52,000 26,00031 23 King Street SW1 Standard Life Tamasek Holdings Q3 2013 44,000 36,00032 76‑88 Wardour Street W1 Walbrook Land/Legal &

GeneralQ3 2013 33,000 33,000

33 1 Eagle Place, 200 Piccadilly SW1 Stanhope/Crown Estate/Hoopp Haymarket Financial, Schulte Roth & Zabel International

Q3 2013 58,000 36,000

34 1 Page Street SW1 Derwent London Burberry Q3 2013 127,000 035 33 Maddox Street W1 Joint London Holdings Q3 2013 12,000 12,00036 8‑10 Hanover Street W1 Morgan Capital Partners Q3 2013 25,000 25,000

Total 1,195,000 462,000Midtown Under Construction37 New Fetter Place East & West EC4 Kirkbi AS Real Estate Q4 2013 93,000 93,00038 101 Euston Road NW1 Romulus Q4 2013 18,000 18,00039 Tudor Court, 6‑8 Bouverie Street EC4 Tudor Court Ltd Q1 2014 47,000 47,00040 Carmelite House, 50 Victoria

EmbankmentEC4 Orion Capital Managers/

Quadrant EstatesQ2 2014 135,000 135,000

41 10 Bloomsbury Way WC1 London & Regional Properties Q3 2014 155,000 155,00042 Turnmill, 63 Clerkenwell Road EC1 Derwent London Publicis Group Q3 2014 58,000 043 One Mabledon Place WC1 Stanhope Q3 2014 86,000 86,00044 Bush House, Aldwych Quarter WC2 Kato Kagaku & Co. Q3 2014 120,000 120,00045 Strand House, Aldwych Quarter WC2 Kato Kagaku & Co. Q3 2014 85,000 85,00046 King House, Aldwych Quarter WC2 Kato Kagaku & Co. Q3 2014 55,000 55,00047 Melbourne House, Aldwych Quarter WC2 Kato Kagaku & Co. Q3 2014 35,000 35,00048 81 Chancery Lane WC2 Raingate Ltd Q3 2014 49,000 49,00049 Cliffords Inn, Fetter Lane EC4 CLS Holdings Q3 2014 28,000 28,00050 40 Chancery Lane WC2 Derwent London Publicis Group Q4 2014 97,000 0

Total 1,061,000 906,000Midtown Completed51 Lever Building, 85 Clerkenwell Road EC1 GE Capital Real Estate/

Endurance LandQ2 2013 30,000 30,000

52 One Southampton Street WC2 Aviva Investors Q2 2013 26,000 26,00053 10 Bedford Street WC2 LaSalle Investment Q2 2013 32,000 32,00054 Africa House, 64‑78 Kingsway WC2 Freshwater Q3 2013 118,000 118,000

Total 206,000 206,000City Under Construction55 Monument Place, 24 Monument Street EC3 Rockspring Property/Alchemy Q4 2013 75,000 75,00056 6 Bevis Marks EC3 AXA REIM/MGPA/CORE Q4 2013 158,000 158,00057 One Commercial Street E1 Redrow Q4 2013 97,000 97,00058 10 Finsbury Square EC2 Pembroke Real Estate Q4 2013 152,000 152,00059 The Worship, 9 Worship Street EC2 Highgate Properties Q4 2013 16,000 16,000

Development table


No. SchemePost code Developer Tenant

Completion date

Total space sq ft

Space available sq ft

60 71 Queen Victoria Street EC4 QV Unit Trust Q1 2014 170,000 170,00061 Lombard London, (67 Lombard Street) EC3 Viridis Real Estate Q1 2014 87,000 87,00062 85 Gresham Street EC2 City of London Q1 2014 40,000 40,00063 The Banking Hall, 8‑10 Moorgate EC2 Moorgate Property Unit Trust Q2 2014 138,000 138,00064 20 Fenchurch Street EC3 Land Securities/Canary Wharf

GroupMarkel International, RJ Kiln, Royal Sun Alliance, Liberty Mutual Insurance, Liberty Syndicates Insurance, Ascot Underwriting

Q2 2014 670,000 317,000

65 Moorgate Exchange, 72 Fore Street EC2 MGPA/CarVal/Quadrant Estates Q2 2014 218,000 218,00066 1 Aldermanbury Square EC2 EPIC Ltd Q2 2014 65,000 65,00067 5 Cheapside EC2 Amsprop Q2 2014 39,000 39,00068 Leadenhall Building, 122 Leadenhall

StreetEC3 British Land/Oxford Properties Aon, Amlin Q3 2014 574,000 288,000

69 100 Cheapside EC2 Quadrant Estates/Orion Capital Managers/City of London/CarVal Investors

Q3 2014 87,000 87,000

70 Bishops Court, 27‑33 Artillery Lane E1 Henderson Global Investors Q3 2014 49,000 49,00071 125 Wood Street EC2 Orchard Street Investment

ManagementQ3 2014 65,000 65,000

72 Alphabeta, 14 Finsbury Square EC2 Resolution Property Q3 2014 210,000 210,00073 Aldgate Tower E1 Aldgate Developments Q4 2014 318,000 318,00074 70 Mark Lane EC3 Mitsui Fudosan/Stanhope Miller Insurance Services Q4 2014 168,000 84,00075 5 Broadgate EC2 British Land/Blackstone UBS Q1 2015 700,000 076 1&2 New Ludgate EC4 Land Securities Q2 2015 375,000 375,00077 Bloomberg Place EC4 Bloomberg/Stanhope Bloomberg Q1 2016 663,000 0

Total 5,134,000 3,048,000City Completed78 77 Queen Victoria Street EC4 Beltane Asset Management Q2 2013 30,000 30,00079 One St Paul’s, 1‑3 Creed Lane EC4 AXA REIM Genesis Oil & Gas Consultants Q2 2013 56,000 080 Finsbury Circus House, 10 South Place EC2 Union Investment Real Estate/

COREQ2 2013 145,000 145,000

81 36‑39 Queen Street EC4 London & Oriental Q3 2013 45,000 45,00082 7 Bishopsgate EC2 Henderson Global Investors Q3 2013 57,000 57,00083 18‑30 Leonard Street EC1 London Square Developments Q3 2013 20,000 20,00084 Sixty London, Holborn Viaduct EC1 AXA REIM/Favermead Amazon Q3 2013 210,000 085 City Tower, 40 Basinghall Street EC2 Great Portland Estates/

Starwood CapitalQ3 2013 84,000 84,000

Total 647,000 381,000Southbank Under Construction86 Sea Containers, Upper Ground SE1 Archlane Ltd Ogilvy, Puma Q1 2014 290,000 38,00087 240 Blackfriars Road SE1 Great Portland Estates/

Ropemaker PropertiesUnited Business Media Q1 2014 224,000 118,000

88 South Bank Tower, Stamford Street SE1 CIT Q1 2015 217,000 217,000Total 731,000 373,000

Southbank Completed89 The Crane Building, 22 Lavington

StreetSE1 Dorrington Plc Q2 2013 48,000 48,000

90 The Place, London Bridge SE1 Sellar Property Group/Qatar National Bank

News International Q3 2013 420,000 0

Total 468,000 48,000King’s Cross Under Contruction91 Regeneration House N1C King’s Cross Central Limited

PartnershipThe Art Fund Q4 2013 10,000 0

92 One Pancras Square N1C King’s Cross Central Limited Partnership

Q1 2014 55,000 55,000

93 Dance Studio. Regent Quarter N1 P&O Estates (IPOE)/Henderson Global Investors

Macmillan Publishing Group Q1 2014 37,000 0

94 Five Pancras Square N1C King’s Cross Central Limited Partnership

Camden Council Q2 2014 150,000 0

95 Two Pancras Square N1C King’s Cross Central Limited Partnership

PRS For Music Q2 2014 130,000 78,000

96 Seven Pancras Square N1C King’s Cross Central Limited Partnership

The Office Group Q3 2014 30,000 0

97 Six Pancras Square N1C AXA REIM/BNP PRE BNP Paribas Q4 2014 370,000 170,000Total 782,000 303,000

King’s Cross Completed98 The Stables, Regent Quarter N1 P&O Estates (IPOE)/Henderson

Global InvestorsMacmillan Publishing Group Q3 2013 10,000 0

99 Printworks, Regent Quarter N1 P&O Estates (IPOE)/Henderson Global Investors

Macmillan Publishing Group Q3 2013 38,000 0

Total 48,000 0Docklands Under Contruction100 25 Churchill Place E14 Canary Wharf Group European Medicines Agency Q1 2014 540,000 290,000

Total 540,000 290,000Docklands Completed

Total 0 0

Red text indicates new starts this survey

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

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