An increasing number of office refurbishment projects are underway in London, as demand for modern business spaces continues to increase.
Research conducted by Drivers Jonas Deloitte revealed that six of the last nine major construction projects to start in the city were refurbishments.
And a quarter of major schemes across the city are now refurbs, the commercial property firm stated.
Anthony Duggan, partner and head of research at Drivers Jonas Deloitte, told Construction Enquirer that at a market level the City has seen “a further increase” in construction.
However, he noted that a number of development completions and a lower level of new starts have led to activity falling in the West End.
“Developers have been encouraged by increased letting activity among the schemes under construction,” Mr Duggan stated.
He said several schemes have achieved early-letting success over the last six months.
Matthew Elliott, partner and head of City agency, told the news provider that the City is “an interesting market” at the moment.
“Banks, traditionally the mainstay of the market, are sitting on their hands for understandable reasons,” he noted.
“Some that could relocate are extending their leases for a few years rather than incur the considerable capex and lease commitment.”
But as banks retrench insurers are boldly moving into new buildings and paying high rents, Mr Elliott stated.
“We are seeing the early signs of a change in the City’s traditional tenant mix towards a more diverse range of occupiers,” he claimed.
The expert said there is greater demand for “high quality, well connected but sensibly priced offices”.
And as such, there is plenty of cause to be confident about the future of the Square Mile as an attractive place for businesses.
“The continuing conversion to residential of buildings in the West End, Midtown and other districts will further strengthen the City’s appeal,” Mr Elliott added.