Five months ago, the City of London Corporation published a ‘heat map’ of construction across the Square Mile.
Of the 9mn square feet under development – or the floorspace of 10 Cheesegraters or 18 Gherkins in old money – three-fifths was said to represent new, largely A-grade office space. With planning applications on the rise, and commuter journeys nudging higher, the corporation had some support for its case that “London is the best place to build and invest”.
Well, maybe. This week, the Financial Times cited data showing that large office buildings in the City are now “almost impossible to sell”. High borrowing costs and concerns around hybrid working mean nothing has changed hands for more than £100mn in 2024. Reportedly, Great Portland Estates (GPE) and Derwent (DLN) are among the major landlords to have tried and failed.