Five developers and the landed estates will deliver more than half of the West End office pipeline until 2018, according to new research from GVA.
Argent’s King’s Cross Central will account for 22%, followed by British Land and the landed estates at 8% each, Derwent London at 7%, Land Securities at 7% and Great Portland Estates at 5% - together reaching 57% of the pipeline.
Patrick O’Keefe, head of London markets at GVA, said: “It illustrates just how much this market has evolved over a short period. Prior to the economic downturn we would estimate more than double that number of developers accounting for that percentage of space.”
Meanwhile, the City office market faces an impending shortage, with GVA research showing active demand for space stood at 9m sq ft at the start of 2014, while only 3.4m sq ft is still available over the year.
The research shows 43% of new or refurbished space has already been pre-let for this year, along with 20% of the pipeline to 2018.
UK property companies continue to dominate the City development pipeline, accounting for 33% of the market, versus 23% for overseas property companies.
British Land, Land Securities and Brookfield were the most active developers in the City.