果冻影院

There are increasing signs of life in the office market with a rise in the value of contracts awarded and schemes entering the construction cycle.

果冻影院鈥檚 construction market research showed that contracts worth a total of 拢2,125 million were awarded for office projects in the three months to April 2024. This total is 61% up on the previous three months and 40% ahead of the same period in 2023.

果冻影院 Economics Director Allan Wil茅n comments: 鈥淭his was driven by work on major projects of 拢100 million or more, which totalled 拢1,403 million during the period.

This was a 214% increase against the preceding three months and a 401% increase on the previous year.鈥�

Major office contracts awarded in the latest quarter include a 拢100 million redevelopment of Newcombe House in Westminster, central London (pictured), with JRL subsidiary Midgard lined up for the work (Project ID: 15240927).

Mid-range rise

Overall, office projects starting on site valued at 拢50 million to 拢100 million rose by 12% in the previous quarter, but smaller value schemes showed the biggest rise.

A total of 拢412 million-worth of office projects valued at 拢20 million to 拢50 million started on site in this period. This latest total is 127% on a year ago.

Examples of underlying office projects starting on site in the latest quarter range from a 拢20.5 million refurbishment of the Baltic Exchange in central London (Project ID: 21538327) to a 拢22.1 million plan for new offices on plots eight and nine at MIRA Technology Park Extension (Project ID: 22353998).

Plans approved

More office schemes continue to secure approval. In the latest quarter, 拢3.6 billion-worth of office work received the green light from the UK鈥檚 planning authorities. This total was 26% up on a year earlier.

Major office schemes granted planning permission in the latest quarter include the 拢200 million Bermondsey Yards scheme in south London (Project ID: 18374020) and the 拢150 million London Wall West in the City of London (Project ID: 17172776).

While the combined value of major projects 鈥� schemes valued at 拢100 million or more 鈥� securing planning permission fell by 22% compared to the preceding quarter, there was a 25% rise in approvals for underlying work valued below 拢100 million on a year ago.

Office schemes in this lower value bracket that were approved in the latest quarter include a 拢33 million proposal at 56-64 Leonard Street in Hackney, East London (Project ID: 10417103), and a 拢54 million scheme at 1-7 Fountain Street in Belfast (Project ID: 19119037).

Forecast rising

The latest results bear out 果冻影院鈥檚 earlier predictions for the sector, which forecast a 6% rise in the value of underlying starts this year.

鈥淐hanging work patterns will remain an important driver for the sector, supporting a gradual recovery in starts over the next two years as landlords and occupiers refurbish and redevelop premises,鈥� adds Mr Wil茅n.

With more work coming through the pipeline, 果冻影院 forecasts underlying starts to rise by another 13% in 2025, when 拢5.3 billion-worth of office work could start on site and boost industry workload.