You don't need to be a rocket scientist to know there is plenty of construction activity in the centre of London. A quick look at the skyline will confirm just how many major construction projects are in progress.
But despite all this activity, at Blayze Group we are wondering if we can build commercial office space in London and the South East fast enough to meet demand.
We don't need to look at the crane count to know what's happening in the city. We're working on a number of projects for developers and main contractors where we are sourcing Project Managers, Construction Managers and Quantity Surveyors at all levels for headline commercial and residential builds across London.
However, the increased level of commercial office construction activity over the last couple of years comes on the back of a period of marked inactivity following the financial crisis of 2007/8.
Deloitte reports that the current spate of London Commercial Office construction projects comes at a time when the level of available office space in London is at its lowest for seven years.
While 3.4m sq ft of office space is due for completion by the end of 2015, much of this is pre-let and will have little effect on assuaging the limited supply of commercial office space in London.
There are more commercial office developments in the pipeline due for completion in 2016-19, but will it come fast enough for London as the economy grows?
DTZ reports that London is already the world's most expensive city for office space, with workstation costs in the west end calculated at just over $29,000 per seat. That compares with around $23K for New York and $21K for Hong Kong. With continuing constraints on supply of prime commercial real estate in the city, the cost of doing business in London will only increase in the forseeable future.
Global businesses still see value in having a presence in one othe world's greatest financial and business centres, but however attractive a destination it might be, London needs to remain competitive to retain its status on the global commercial stage.
Simply stated - if London is to remain the destination of choice for global corporations, it needs more prime commercial office space - and fast.
About Blayze Group
Blayze Group is the preeminent search and selection firm within the real estate sector. We take time to understand our clients’ business aspirations and objectives, and combine this personal service with our expert knowledge and experience within the market to supply the highest calibre candidates.
If you want to know how our professional service will save you time and money, as well as providing top calibre candidates who will add value to your business, call Harvey Gretton on 020 7337 7500.
If you are a real estate professional with ambitions to progress your career, contact our specialist consultants for a confidential chat.
Simon Waller - General Practice - email@example.com
Ross Sowerbutts - Production - firstname.lastname@example.org
Leo Gee - Consultancy - email@example.com
Chris Wright - Sales & Marketing - firstname.lastname@example.org
Alex Nisangah - Architecture & Design - email@example.com
Laura Padgett - Blayze Group North - firstname.lastname@example.org
Deloitte London Crane Survey
RIBA - London takes Top Spot in Construction Costs League
Financial Times - London on the Rise as Office Construction Leaps 24% in 6 Months
DTZ - Deflation not a threat to commercial property
DTZ - Global Office Thermometer
Arcadis International Construction Costs