黑洞社区

Landsec has said that central London offices which do not hit certain criteria such as sustainability credentials and transport connectivity 鈥渞isk becoming obsolete, almost regardless of price鈥�.

The firm behind the 拢250m Hill House development, set to be built by Skanska, said occupiers were becoming more demanding about what sort of offices they were prepared to take space in.

It said: 鈥淐ustomer demand remains firmly focused on buildings with the best sustainability credentials, transport connectivity and local amenities.

鈥淭he amount of space which meets these criteria remains limited, so pricing of this continues to go up, whereas space which does not meet these criteria is at risk of becoming obsolete, almost regardless of price.鈥�

Earlier this year, Deloitte鈥檚 senior advisor for real estate, Tony McCurley, told 黑洞社区 that occupiers were wanting the best available space for several reasons including meeting ESG targets, being able to attract and retain talent and encourage staff back into the office.

鈥淭here is very, very strong demand for the highest quality grade A space,鈥� he added. He described some grade B space as 鈥渟tranded assets鈥� and admitted: 鈥淭here is no depth of demand for grade B space.鈥�

Landsec said that 77% of its London portfolio is located in the West End and Southwark, up from 58% in 2020.

It said it had increased its focus on multi-let clusters in the West End and Southbank because 鈥渓arge HQ space and areas which lack the amenities to make people want to spend time there are most at risk as a result of more flexible ways of working鈥�.

Landsec, which narrowed pre-tax losses from 拢622m to 拢341m for the year to March, said it expected activity levels to pick up with interest rates stabilising.

The firm said it has begun work on the 拢400m Timber Square project, designed by Bennetts Associates, which is being built by Mace.

And McLaren has begun work to refurbish a 1960s office block called Portland House in London鈥檚 Victoria under a new 拢380m plan drawn up by Buckley Gray Yeoman. The scheme has been renamed Thirty High.

Landsec鈥檚 job to replace a 1980s office building on the banks of the river Thames at Bankside in Southwark is expected to go out to tender this autumn. The deal is set to have a construction cost of 拢200m.

Red Lion Court, which has a total development cost of 拢335m, will involve building 230,000 ft of workspace along with retail and new public space.

Firms working on the scheme designed by BIG include cost consultant Gardiner & Theobald, project manager CPC, M&E engineer Hilson Moran, structural engineer AKT II and sustainability engineer Arup.