Out-Law News 1 min. read
16 Nov 2011, 2:28 pm
The report revealed a bigger increase in London's West End, where total activity has increased by 16% since January 2011. By contrast, there is less activity in the Midtown and Docklands areas and the level of building completions there is well below the ten-year average, according to the report.
The number of planning permission consents has risen in the City over the past nine months, boosted by a number of sizeable schemes receiving consent, the report said. The largest is Hammerson’s London Wall Place, which is a 500,000 sq ft scheme which comprises two landmark office buildings.
Land Securities received permission for 30 Old Bailey and 60 Ludgate Hill, a mixed-use redevelopment that will include 375,000 sq ft of office space. Ithas also secured planning consent for its 1 New Street Square development to provide around 250,000 sq ft of offices and shops. Work is expected to start in 2013 and completion is scheduled for 2016.
The lack of grade A office space has encouraged developers to propose more projects in the West End the report said but, in contrast, Canary Wharf has not seen any significant office development since the completion of 30 North Colonnade in 2009. There continues to be a shortage of prime office space in the Midtown.
“Although the City has been going through a quiet period in terms of speculative development, both the amount of property under construction and the volume of planning permissions granted have increased over the last nine months," said Dan Bayley, managing director of Central London at BNP Paribas Real Estate. "At the same time the amount of space under construction in the West End has seen a significant increase, bringing it back into line with normal levels of activity."
“The study reveals that the property sector is responding positively to the lack of top quality office space currently being experienced in the capital’s main business areas and that London will be well placed as the economy recovers,” Bayley said.
