A wave of high-spec office schemes across London and other parts of the UK is opening up substantial new work for contractors, as developers respond to demand for energy‑efficient, grade‑A space that helps employers attract and retain staff.
April’s Glenigan Construction Review reports that office project starts totalled just over £4 billion in Q1 (January–March), a 75% rise on both the previous quarter and the same period last year.
London dominated activity, supported by large City of London schemes and major data centre projects. Starts in the capital were worth almost £2.9 billion in January–March, more than double a year earlier. Other regions also posted strong gains, notably the South West (starts rose 15‑fold), Scotland (up 55%), Northern Ireland (more than 16‑fold) and the North East.
Looking ahead, London offers the brightest prospects. Glenigan figures show the value of office planning approvals in the capital climbed by 90% in the first quarter compared with last year.
The latest Deloitte office crane survey for London highlights developer confidence in resilient occupier demand for grade‑A offices. Anticipating a potential office supply gap later in the decade, the survey finds most developers expect their pipeline to either ‘increase’ (58%) or ‘remain stable’ (34%) over the next 12 months, while three‑quarters feel ‘more positive’ about leasing demand.
Refurbishments remain a key driver: they made up around two‑thirds of all new office starts in the capital last year, covering some 3.1 million sq ft.
Glenigan project data also flags major City of London schemes set to break ground in the coming months. The £330 million Alliance House at 60 Gracechurch Street—a 36‑storey tower with ground and basement levels—is due to start later this summer. Bovis is the main contractor on the 52,000+ sq m project (Project ID: 24112367).
Construction on the £477 million, 53‑storey office at 99 Bishopsgate (pictured) is likewise expected to begin later this summer, following detailed consent, delivering over 144,000 sq m of new space.
At 1 Undershaft – The Trellis, demolition is progressing and planning conditions are being resolved ahead of a planned start next spring. The 74‑storey, £510 million office tower by developer Stanhope will provide over 154,000 sq m, is at pre‑tender, and has a 60‑month build programme.
Larger schemes are becoming more prominent in the pipeline. Although the total value of underlying office planning approvals fell year on year in Q1, approvals for major projects over £100 million rose by 2%. Beyond London, approvals strengthened in the South East (up 48%), surged in the North East (almost tenfold) and climbed in Wales (up 157%).
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