New offices with a garden terrace are planned at 55 Gracechurch Street
(Picture: City of London press image)The amount of City office floorspace in new developments that got the green light during the year has surged, new data shows.
The City of London Corporation said in 2021 its planning and transportation committee resolved to approve a total of 4.4 million square feet of new office floorspace. That compares with 2.6 million square feet in in the prior 12 months.
The figures, which show some developer confidence in post-pandemic offices, look at gross floorspace and do not take into account any existing office floorspace within developments or any floorspace which will be utilised for other uses.
No figures were provided to show how the consent compared with pre-pandemic numbers in 2019.
Some property companies are betting that, even if businesses embrace flexible working, many will still want modern and environmentally-friendly space for staff to use when they are in offices, even if that is only for part of the week.
Projects that got the go-ahead in 2021 included a 30-storey development at 55 Gracechurch Street.
Alastair Moss, chair of the City of London Corporation’s planning and transportation committee, said: “There continues to be such strong confidence in the City of London as the place to build world-leading offices for the businesses of today and those of the future.”
He added: “Throughout 2021 we have seen unprecedented interest in developing office space within the Square Mile...Office occupiers are increasingly demanding to be situated in top-quality and sustainable buildings with flexible space suitable for new ways of working.”
The corporation said there are a number of further office developments in the planning pipeline expected to be looked at for decisions in 2022.
Landlords that could potentially lose out as tenant demands change are those sitting on older stock, where desk areas are more cramped for example.
