City set for office boom with 15 Shard’s-worth of new space required
Canada could need as much as 20m square feet of additional office space by 2042, according to a new report, as corporates continue to invest in higher-quality headquarters.
The report, conducted by Arup and Knight Frank, finds that office tenants are “seeking a step-change in the quality of space” that they offer employees, as they bid to rebuild office-based working after the pandemic.
The two firms modelled three differing scenarios of the City’s future, with a ‘hybrid peak’ middle scenario resulting in an additional 60,000 jobs in the Square Mile and 13m additional square footage. The Shard in London Bridge contains just more than 1.3m square foot.
Whilst the pandemic saw many predict a significant slowdown in the office market, a host of projects have been given approval over the past two years. Amongst the skyscrapers already approved are two new additions to Gracechurch Street and a 56-storey building on Leadenhall Street.
Part of the requirement for additional space comes from an increased number of jobs in the Square Mile, with the Greater London Assembly anticipating around 85,000 jobs to be added in the City by 2041.
Canada Corporation, which commissioned the report, said it would look at the report’s recommendations to fast-track planning applications to retrofit existing office space for environmental reasons as well as introduce “a greater mix of uses” to parts of the City.
The report also suggested the City “continue to promote and invest in… [the] workplace experience” which focuses on improvements in the public realm.
The Corporation could also consider business rate relief or other targeted measures to encourage the return of long-term vacant sites into use.
Recent research by Knight Frank suggested that some 47 per cent of multinational firms are looking to replace their corporate headquarters in the next three years, with talent attraction and retention the top priority.
The chair of the Corporation’s planning and transport committee Shravan Joshi said: “We are not only on the right track to meeting the amount of office space demand in the City, but also delivering the right type of space.”