E C Harris: London Office Development Pipeline (Going down the tubes)

Link to E C Harris web site

"A new report out today from EC Harris, the global built asset consultancy, reveals that the size of the London office development pipeline is unprecedented, with over 150 potential projects ready to deliver 53 million square feet of gross internal office floor space by 2016. However; [semi-colon??] the report warns that many of the developments are in a precarious position with projects struggling to attract pre-let tenants and external funding which could see 50% never even reaching the construction site.

"The report, entitled 'London Office Development: The Challenge Ahead' confirms that the City of London remains the centre of attention for developers and investors alike, with over 60% of the total area (34m square foot gross internal area) and over 50% of the number of potential projects located there. The average size of a City project is circa 420,000 square foot gross, nearly twice the size of those planned for the West End or Midtown, reflecting the large scale tower schemes that are planned or under construction such as 20 Fenchurch Street and the Leadenhall Building.

"Richard Taylor, Head of Commercial Development at EC Harris and author of the report said:

“On paper, the development pipeline for London offices shows massive potential and investment. However, in reality the market is very different, with a large number of these projects unlikely to be delivered as they struggle to find pre-lets and external funding. To stand a chance for success, projects need to differentiate and create a significant market advantage if they are to maximise their chances of completion."