Surge in office build and refurb in London – Deloitte

Deloitte’s London Office Crane Survey reports the highest volume of refurbishment schemes starting since records began in 2005, with 37 new schemes covering 3.2 million square feet.

The volume of all new office starts – refurbishments and new builds – is up by almost 80%, with the West End continuing to lead the way;

Delays in completion mean that over 10 million sq. ft. is now projected to be delivered during 2023, with this year on track to catch-up after several years of disruption.

This increase in schemes has been driven by a need to reach the anticipated Minimum Energy Efficiency Standard (MEES) regulations to achieve Energy Performance Certificate (EPC) B rating by 2030.

According to Deloitte Demand is shifting to the highest quality space, with employers looking for space that attracts and retains talent, aligns with their brand, and embraces new working practices.

DLA Piper partner (real estate) Paul Jayson insists the surge in refurbishments of office buildings in central London highlights the significance of creating appealing spaces to retain and attract talent.

“The rise of hybrid working has empowered employees to make decisions regarding office attendance, resulting in a divergence in the office market.”

He adds: “Desirable amenities and environmentally friendly, well-located buildings are now in high demand. Owners of less popular commercial real estate may consider upgrading their properties to a higher technological specification and with flexible workspace designs, as well as ensuring compliance with the new minimum energy efficiency standards (MEES) and other sustainability benchmarks.”


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