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.