Connect with us

Uncategorized

London Office Crane Survey – Caution during the flight to quality

Published

on



A tilt to refurbishment and ‘flight to quality’ drive stronger demand for Grade A accommodation


London office development pipeline is forecast to grow next year, with 2023 likely to be the post-pandemic ‘Year of the Catch-up’ on completions


Developers expect a maturing approach to hybrid working to reduce the requirement for office space per head by 10% vs pre-pandemic levels, but increased demand for high quality space set to grow


Majority of developers (81%) report their new developments will be net zero by 2034, but want greater clarity around net zero targets and legislation


Overall, cost continues to be the number one drag on construction activity overall.

A desire for high quality office space is driving increasing demand for Grade A accommodation in ‘a flight to quality’, according to the Deloitte London Office Crane Survey.* As a result, refurbishments remain a strong feature of new construction activity, representing 26 of the 31 new starts during the survey period.
In the six months to September, the total volume of refurbished space was 1.7 million sq ft. To attract workers back to the office, firms are demanding more high quality Grade A office space, leading to a concentration of activity in the City, West End and Midtown areas of London where there is a relatively large stock of existing buildings ripe for refurbishment. In addition, ESG concerns around demolition, coupled with the financial risk of new build projects appear to be making refurbishments more attractive.
Margaret Doyle, chief insights officer and partner for financial services at Deloitte, said: “The past year has been characterised by an uptick in post-pandemic refurbishment activity. Looking forward, 2023 could turn out to be the ‘Year of the Catch-up,’ delivering the highest volume of new office space for 20 years. However, this will depend on whether supply chain disruptions, labour shortages, financing difficulties or material price inflation cause further completion delays. Looking further forward to 2025, we anticipate it will be the ‘Year of the Investor’ as renewed pressure on stock stimulates rental growth, creating a wave of fresh opportunities for developers.”
Pipeline
During the survey period, 31 schemes with a total volume of 2.5 million sq ft started between April and September 2022. This represents a 6% rise in volume from the previous survey (2.3 million sq ft), but remains below the ten-year average (2.9 million sq ft). Completions are also up by 71% from the previous six months, with nearly 3.0 million sq ft delivered across 29 schemes during this latest survey period.
However, following a sustained period of optimism, developers are beginning to grow increasingly cautious about the immediate outlook for the London office leasing market. Only 36% reported improving leasing demand over the six months to September 2022, compared to 45% who reported softening demand over the same period. This caution follows a period of relatively buoyant leasing activity after the sharp declines witnessed in the wake of the pandemic. Most developers (70%) expect the shift to hybrid working will reduce the overall requirement for London office space per head by 10% in the short-term compared to pre-pandemic levels, driven by a maturing approach to how and where people work.
Net zero commitments
More than three quarters of developers (81%) say their new developments will achieve net zero by 2034. However, over half (54%) also said their developments would only reach net zero after 2030, in contrast to 70% striving for 2030 or earlier in the same period last year.
Philip Parnell, partner and real estate climate & sustainability lead said: “With tenants seeking better quality accommodation offering demonstrable ESG credentials, developers are focusing increasingly on the refurbishment of existing stock as a means of addressing ‘stranding risk’. Net zero targets and legislation to support the commercial case for net zero development remain unclear and it remains to be seen whether the current macroeconomic headwinds will stifle progress. However, with both occupational and investor stakeholder pressure mounting we expect the shift towards greater alignment from developers with the ESG agenda to continue.”
Cost challenges
Almost nine in ten developers (91%) continue to rate construction costs as their leading challenge, albeit a smaller proportion than seen in the previous survey (100%), as concerns around the availability of funding grow. More than a quarter of developers (27%) cite availability of funding as an issue, compared to none in the previous survey, with the increasing cost of materials, coupled with rising energy tariffs, driving up the price of construction.
Sophie Allan, director, real assets advisory at Deloitte, said: “Construction costs are likely to remain a major challenge over the near term. Likewise, rapidly increasing debt funding costs will continue to weigh on scheme viability where sites have already been acquired. This, along with inflation in tender prices, will put pressure on land prices going forward.”
The evolving city
The legal profession has taken the largest proportion of under-construction pre-lets, representing a third (33%) of total pre-completion let volumes. Meanwhile, by contrast, the share of pre-completion letting volumes taken by financial services firms has shrunk by almost half in under five years to 17%. The overall share for these two sectors has grown since the last survey, from 44% to 50%.
Margaret Doyle said: “The decline in financial services pre-completion letting volumes is balanced by significant growth in the legal sector. In many cases, office moves have been driven by a desire to move to accommodation with stronger ESG credentials and helps support employee wellbeing. The preference for higher quality Grade A space that we see across sectors is one we expect to endure.”
 

End
Note to editors
*Conducted twice a year, the London Office Crane Survey analysed office construction data over the six months from April to September 2022 and included a survey of London’s biggest developers conducted in September 2022.
About the London Office Crane Survey:
*Deloitte’s London Office Crane Survey has been running for 26 years and is updated every six months, with the last survey published in May 2022. The data in this report is correct as of September 2022.
The Crane Survey covers seven major central London office markets known as submarkets: The City, West End, Docklands, King’s Cross, Midtown, Paddington, Southbank, as well as three emerging submarkets: Vauxhall-Nine Elms-Battersea (VNEB), White City and Stratford.
The first Crane Survey in London was published in 1996, focusing solely on the West End. The London Office Crane Survey as we know it today was first published six years later in Summer 2002, with the addition of our emerging sub-markets in Summer 2016.
The London Office Crane Survey is the definitive review of office construction in central London and regarded as a barometer of developer sentiment and future office supply. The report measures the volume and impact of office development (new build or significant office refurbishments of 10,000 sq ft or more) currently taking place across central London and analyses the pipeline of future development over the next four years.
The Crane Survey also features a ‘Construction Cost and Workload Sentiment Survey’ – a survey of main and subcontractors, capturing market sentiment on workload and price.
Deloitte’s commercial property research team is focused on producing thoughtful and insightful publications, as well as comprehensive bespoke reports for investors, developers, and occupiers. 
www.deloitte.co.uk/cranesurvey
About Deloitte    
In this press release references to “Deloitte” are references to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”) a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see deloitte.com/about for a detailed description of the legal structure of DTTL and its member firms.
Deloitte LLP is a subsidiary of Deloitte NSE LLP, which is a member firm of DTTL, and is among the UK’s leading professional services firms.
The information contained in this press release is correct at the time of going to press.
For more information, please visit www.deloitte.co.uk.

Continue Reading
Click to comment

Leave a Reply

E-posta hesabınız yayımlanmayacak. Gerekli alanlar * ile işaretlenmişlerdir

Uncategorized

ICE London 2023 to feature exhibitors from record 68 nations – IAG

Published

on

By



Industry trade show ICE London will feature exhibitors from a record 68 nations, topping the previous best of 65 set three years ago, according to organizer Clarion Gaming.
ICE London returns as a full-sized show for the first time since 2020 from 7 to 9 February, with the total 623 exhibitors representing everything from Argentina to Australia and Macau to Mexico.
“No other exhibition in the gaming space can come anywhere near the internationalism of ICE,” said Clarion Gaming Managing Director, Stuart Hunter.
“To have 68 nations represented by our community of exhibitors means that visitors are immediately part of what is a global experience with unique access to the smartest gaming innovators drawn from every corner of the world. There are very few exhibitions of scale in any industry sector which are able to compare with such international representation and legitimately lay claim to being a ‘global’ or a ‘world’ event.
“Once an event is recognized as being genuinely international, stakeholder groups including brands, regulators, trade associations, media groups and strategic industry-wide bodies focus their activities accordingly.
“Research that we’ve undertaken has shown that for many people ICE and iGB Affiliate London actually start on the Sunday preceding and finish on the following Saturday. In that week we estimate that over 100 gambling industry events will take place outside of the show hours providing a new and compelling perspective on why ICE and iGB Affiliate London are so influential and important to the world industry.”
IAG will have a team of four at ICE London next week. Visit us at Stand ND7-C.

Continue Reading

Uncategorized

David Ford and Annie Dressner Live in London

Published

on

By


There’s something special about London on a Saturday night – there’s a certain buzz in the air as you head into the Capital city. For me that buzz was extra special, as I was going to see David Ford and Annie Dressner at The Lexington in Islington. I literally listened to their ’10 Days (Live)’ album for the first time a week ago, but since then it’s been on repeat and heading in I knew that the night was going to be special.
The Lexington is a great place for music, with a bar on the ground floor before heading up the winding stairs to the spacious venue itself. And as the crowd started coming in, the atmosphere in the room was growing by the minute.
Opening the night was Scottish singer songwriter Gary Stewart. He set the night off really well, with an engaging set that got the crowd onside from the start. He opened with his 2021 single ‘Hot To Trot‘ and you already knew the set was going to be a good one – a rousing folk song with great lyrical dexterity. The highlight of the set was ‘Frontlines’, a simply gorgeous song (check out a YouTube video of the song here – https://www.youtube.com/watch?v=tDCLwYwsesk). Gary ended with a fine cover of Paul Simon’s ‘Song for the Asking’.
It was time for a quick visit to the bar before settling down for the main event. 
The duo appeared on the stage to great applause, David in an orange shirt and Annie in a sparkling black dress. They opened with ‘Easy Falling’, the first song that I’ve ever heard of theirs, and a song that convinced me I needed to listen to the rest of the album. This slow and moving number is a touching love song and shows off the brilliant harmonies of David and Annie – there’s something special about the English (David) and US accents (Annie) mingling in the way that they do. 
Throughout the set, there were so many highlights. ‘Something I’ll Have to Learn‘ is a song with an almost timeless feel that feels like a conversation in song, Annie’s original ‘Strangers Who Knew Each Other’s Names‘ was simply brilliant and ‘Some Folks Are Lucky I Guess‘ is a song with a great sentiment. ‘Can’t Help What I Want‘ (below) is a great example of those brilliant harmonies that the two share.

‘Trash‘, a cover of the Suede hit, was a particular highlight – a song that was a nice surprise on the live album. As they break into ‘Oh maybe, maybe it’s the clothes you wear‘ it almost feels like this was a song that Suede wrote for David and Annie, their version is that good. Outstanding.
The set had a second cover, a song that Annie introduced as ‘an American classic‘. This classic was ‘Ain’t No Pleasing You‘ from Chas and Dave, a song that typified the cockney sound of London back in the 1980’s. I love the way they re-worked it and there was something special about the way Annie sings the word ‘Darling’ in her US twang that just resonated and put a smile on my face.
There were great moments of humour throughout the night, the chat between the two great. At one point mid-song, Annie passed her guitar to David, exclaiming ‘I knew there were chords in this song, I just didn’t know which ones‘ which had the crowd laughing.
The best of the night was saved till last. ‘Warning Sign’ had quickly become my favourite song from the pair and hearing it live in person lived up to all expectations. There’s such a beauty in live music, and hearing songs like this with other people in a venue can really bring a song home – and almost even change your own personal relationship with a song.
The final song of the night (there was no encore as David explained that they literally had no more songs!) was ‘Put Me In A Corner’. Annie’s vocals take the lead in this track and it was just magical, the emotion of the song emanating from the stage and filling the room. You can listen and see for yourself below.

You never know what to expect when you see an artist or artists perform for the first time. Some exceed expectations and some just don’t hit the heights you expect. In David Ford and Annie Dressner, it was definitely the former. The gig was stripped back – just two people on a stage creating a moment. And what a moment it was.
Annie and David and reviewer Nick Cantwell
Check out their websites and hit and follow the social links!
http://www.dressnerford.com/

Home


http://anniedressner.com/
***Note – I need to say a word about the audience for the gig. The audience was impeccable, with barely any talking at all at any point (apart from whispered orders at the bar). Credit goes to Gary, Annie and David, who managed to grab the audience from the start, but also to everyone there. If you were there yourself, give yourself a high five!***
Review written by Nick Cantwell (instagram.com/nickcantwellmanagement)
 
 
 


Continue Reading

Uncategorized

Graduate Organist vacancy in London and Home Counties – Church Times

Published

on

By



Graduate Organist vacancy in London and Home Counties  Church Times

Continue Reading

Trending

101thingsbeforeyoudie All Rights Reserved. - © 2022