New central London office construction buckles 50% in six months: Deloitte
New office space construction operations in central London tumbled by 50% in six months ended September, citing COVID-19 drawbacks as a stumbling block for developers from continuing construction operations. This data was shown in a Deloitte survey published on Monday.
Deloitte Real Estate’s London Office Crane Survey reported a 2.6 million square feet plunge in new office space construction, taking volumes back to their old averages following pre-pandemic highs.
Also, the survey revealed a higher-than-average 40% of new construction was pre-let, indicating less speculative building. Six speculative schemes were put on hold, pending clarity, and many more held over until 2021, according to Deloitte.
Developers claimed that the major letdown to starting a new project was weak tenant demand, which could be attributed to the work-from-home recourse of companies.
The new work setup has prompted many companies to consider a more flexible approach to office attendance, raising concerns over future demand for tower blocks around the city.