London office construction plummets
New data from Deloitte Real Estate shows that office construction in London in the six months preceding September 2020 fell by half.
The figures show the impact of COVID-19, and the new ‘work from home’ status-quo for many office workers, on the construction industry. They also indicate a reluctance for construction firms to take on new construction projects, instead opting for ‘safer’ refurbishment projects.
Mike Cracknell, director at Deloitte Real Estate, said in Construction Enquirer: “Our data reveals that 3.3 million square feet of office construction was not completed as scheduled between April and September and remains under construction.
“Of the developers we surveyed, a clear majority – 85% – pointed to weak tenant demand as the major obstacle to starting any new development. Until there is more clarity about occupiers’ office plans, developers will hesitate to embark on new projects, particularly speculative ones.”