This 6th edition of our commercial office construction report specifically reviews the UK market against a backdrop of continued economic uncertainty surrounding Brexit.
Focusing on the structure and size of the UK Commercial Office sector in both London and in key regional cities. Analysis of key drivers of office activity including take-up, availability, supply and prime office rents.
In London, the commercial office market has become less reliant on the banking and financial services sectors and take-up is lower in these sectors than in previous years.
The ‘Commercial Office Construction Market Report – UK 2019-2023‘ costs £945+VAT (if applicable) for a PDF version.
£945.00
The 6th edition of the ‘Commercial Office Construction Market Report – UK 2019-2023’ focuses on construction activity within the UK Commercial Office Market against a backdrop of continued economic uncertainty surrounding Brexit.
Abstract Securities, ADP, AHH Construction, AHR,Allies & Morrison, Argent, Arup, Aukett Swanke, Balfour Beatty, BAM, Barlow Interiors, Barnwood Interiors, BDP, Beck Interiors, Bowmer & Kirkland, 8Build, Bridgford Interiors, British Land, Broadway, Brookfield Properties, Buro Happold, BW Interiors, Byrne Group, Canary Wharf Contractors, Clark Contracts, Collins Construction, Como Interiors, Derwent London, 3D Reid, Eric Parry, Eric Wright Group, Faulkner Browns, Feilden Clegg Bradley, Foggo Associates, Frogmore, Galliford Try, Glenn Howells, Graham Interiors, Great Portland Estates, Grimshaw, Grosvenor, Havelock Europa, Heron International, Hines, HKR, HLM Architects, HOK, Hurst Group, Interserve, ISG, John Sisk, Kier, Kohn Pedersen Fox, Laing O’Rourke, Land Securities, Lend Lease, MACE, M&G Real Estate, MAKE Architects, Malyan, Maris Interiors, McLaren Construction, McLaughlin & Harvey, MEPC, Midas Construction, MITIE Interiors, Modus Group, Morgan Lovell, Morgan Sindall, Morris & Spottiswood, Multiplex, NG Bailey, Norr Architects, Overbury, Paragon Interiors, Parkeray, Patton Fit-out, Peel, PLP Architecture, Portview, Railston, RG Carter, Robertson Construction, Royal Institute of British Architects (RIBA), Russells Construction, Scott Brownrigg, Seddon Group, Sharkey, Sheppard Robson, Simons Construction, SimpsonHaugh & Partners, Simpson (York), Skanska, SOM, Speller Metcalfe, Stanhope, St. Modwen, Stride Treglown, Structuretone, Styles & Wood, Swanke Hayden Connell, U&I, Urban & Civic, Vinci, Wates Interiors, Willmott Dixon, Woods Bagot,
With strong leasing activity seen throughout 2018, availability levels of prime stock have been decreasing and remain constrained across many regional UK office markets, particularly the South East and M25 regions. This is leading to a higher level of competition for space and driving up rents in all key cities.
In 2019, slower economic growth and Brexit-related uncertainty may dampen UK office development activity. However, a lower level of new development is likely to increase competition for office space and support rental levels in those locations with limited stock.
1. INTRODUCTION 8
2. SUMMARY AND FUTURE PROSPECTS 10
3. ECONOMIC ENVIRONMENT 14
3.1 OVERVIEW AND OUTLOOK 14
3.2 KEY DATA 15
3.2.1 GDP 15
3.2.2 Inflation & Interest Rates 15
3.2.3 Employment & Wages 16
3.2.4 Household Consumption 17
3.2.5 Sterling 18
4. CONSTRUCTION MARKET FOR COMMERCIAL OFFICES 19
4.1 OVERALL CONSTRUCTION OUTPUT 19
4.1.1 Total Construction Output to 2023 19
4.1.2 Non-Residential Construction Output by Sector 21
4.2 CONSTRUCTION OUTPUT IN THE OFFICES SECTOR 23
4.2.1 Overview and Definition 23
4.2.2 Value of Construction Output and New Orders in the Offices Sector 23
4.2.3 Market Prospects for Office Construction Work 26
4.3 UK COMMERCIAL OFFICE CONSTRUCTION DEVELOPMENT PIPELINE 29
4.3.1 Commercial Office Construction Contracts 29
4.3.2 Office Planning Pipeline 30
4.4 LONDON OFFICE CONSTRUCTION MARKET AND PIPELINE 31
4.4.1 Central London Office Market – Contracts Awarded 31
4.4.2 Central London Office Market – Contracts in the Pipeline 31
4.4.3 Central London Office Development Pipeline 33
4.4 REGIONAL OFFICE CONSTRUCTION MARKET 37
4.4.1 Regional Office Contracts Awarded in 2018 37
4.4.2 Regional Office Market – Contracts in the Pipeline 38
4.4.3 Regional Office Development Pipeline 39
4.5 REGIONAL ANALYSIS 41
4.5.1 Birmingham 41
4.5.2 Bristol 42
4.5.3 Cardiff 43
4.5.4 Edinburgh 44
4.5.5 Glasgow 45
4.5.6 Leeds 46
4.5.7 Manchester 47
4.5.8 Newcastle-Upon-Tyne 48
4.5.9 Sheffield 49
4.6 OFFICE REFURBISHMENT/FIT OUT MARKET 51
5. THE COMMERCIAL OFFICE MARKET IN THE UK 53
5.1 PERFORMANCE OF THE COMMERCIAL OFFICE SECTOR 53
5.1.1 Take-up 53
5.1.2 Office Occupiers by End-use Sector 54
5.1.3 Supply 55
5.1.4 Rental Growth 56
5.2 REGIONAL OFFICE MARKETS 57
5.2.1 Birmingham 61
5.2.2 Bristol 61
5.2.3 Cardiff 62
5.2.4 Edinburgh 62
5.2.5 Glasgow 63
5.2.6 Leeds 64
5.2.7 Liverpool 64
5.2.8 Manchester 65
5.2.9 Newcastle 66
5.2.10 Sheffield 66
5.3 LONDON OFFICE MARKET 67
5.3.1 City 68
5.3.2 West End 70
5.3.3 Docklands 72
5.4 COMMERCIAL OFFICES – TALL BUILDINGS MARKET IN THE UK 74
5.5 OUTLOOK FOR THE COMMERCIAL OFFICE MARKET 77
6. FACTORS AFFECTING THE COMMERCIAL OFFICE MARKET 79
5.1 PLANNING ISSUES 79
5.1.1 National Planning Policy 79
5.1.2 Local Enterprise Partnerships 79
5.1.3 Planning Issues in London 80
5.1.4 Conversion of Offices to other Uses 84
5.1.5 Business Rates 85
5.2 SUSTAINABILITY AND ‘GREEN’ OFFICES 85
5.2.1 Carbon Emissions from Office Buildings 85
5.2.2 Key Environmental Legislation Affecting Offices 87
5.2.3 BREEAM for Office Development 89
5.3 MODERN METHODS OF CONSTRUCTION (MMC) IN THE COMMERCIAL OFFICE MARKET 89
5.4 CONSTRUCTION COSTS 91
5.4.1 Tall Buildings – Construction Costs 92
5.5 IMPACT OF TRANSPORT PROJECTS ON THE COMMERCIAL OFFICE MARKET 94
5.5.1 Transport Developments in London 94
5.5.2 Transport Developments across the Regions 97
7. CONSTRUCTION MARKET SUPPLY – OFFICE SECTOR 99
7.1 LEADING CONSTRUCTION CONTRACTORS IN THE COMMERCIAL OFFICE SECTOR 99
7.1.1 Contractors’ Market Share in the Office Sector – By Contract Awards 99
7.1.2 Fit-out Contractors in the Commercial Office Sector 100
7.2 CONTRACTOR PROFILES 101
7.2.1 Wates 101
7.2.2 Lendlease 101
7.2.3 BAM 102
7.2.4 Mace 102
7.2.5 Laing O’Rourke 103
7.2.6 Kier 103
7.2.7 Sir Robert McAlpine 104
7.2.8 ISG 105
7.2.9 Skanska 105
7.2.10 Canary Wharf Group 106
7.2.11 Multiplex 106
7.2.12 Morgan Sindall 107
7.2.13 Willmott Dixon 108
7.2.14 Others 108
7.3 LEADING ARCHITECTURAL PRACTICES & DEVELOPERS IN THE COMMERCIAL OFFICE SECTOR 113
CHART 1: CONTRACTORS’ OUTPUT IN THE OFFICES SECTOR 2012-2021 BY VALUE (£M) 9
TABLE 1: UK OFFICE MARKET – REGIONAL SUMMARY DATA BY CITY 2018 (FIGURES ROUNDED UP) 10
TABLE 2: GDP DATA – 2015-2019 – KEY CONSTITUENT ELEMENTS 15
CHART 3: INTEREST RATES AND INFLATION (CPI) FROM 2008-2023 16
TABLE 4: AVERAGE WEEKLY EARNINGS DATA – GB – TOTAL PAY – 2014-2019 (SEASONALLY ADJUSTED) 17
CHART 5: PDI & SAVINGS RATIO AT CURRENT PRICES 2008-2023 17
TABLE 6: EXCHANGE RATE FLUCTUATIONS 2015-2021 – STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 18
CHART 7: VALUE OF TOTAL CONSTRUCTION OUTPUT 2014-2023 BY VALUE (£BN AT CURRENT PRICES) 19
CHART 8: NON-RESIDENTIAL CONSTRUCTION OUTPUT (GB) BY SECTOR 2018 – % BY VALUE 21
CHART 9: OFFICE CONSTRUCTION OUTPUT (GB) BY SECTOR 2018 – % BY VALUE 23
TABLE 10: CONTRACTOR’S OUTPUT IN THE OFFICES SECTOR (PUBLIC & PRIVATE) 2009-2018 (£M) 24
CHART 11: OFFICE OUTPUT AND NEW ORDERS GB QUARTERLY ANALYSIS Q1 2015 TO Q4 2018 – BY VALUE (£M AT CURRENT PRICES) 25
CHART 12: VALUE OF OFFICE CONSTRUCTION OUTPUT 2014 – 2023: BY VALUE (£M AT CURRENT PRICES) 26
CHART 13: OFFICE CONTRACT AWARDS Q1 2016 – Q1 2019 BY VALUE (£M) AND NUMBER OF CONTRACTS 29
CHART 14: OFFICE CONTRACTS IN THE PIPELINE 2019-2029 BY VALUE (£M) AND NUMBER OF CONTRACTS 30
CHART 15: LONDON OFFICE CONTRACTS IN THE PIPELINE 2019-2029 BY VALUE (£M) AND NUMBER OF CONTRACTS 32
CHART 16: LONDON – OFFICE CONSTRUCTION CONTRACTS IN THE PIPELINE BY BOROUGH (AS AT MID-APRIL 2019) (%) 32
CHART 17: LONDON OFFICE DEVELOPMENT PIPELINE: TOTAL DEVELOPMENT SPACE ANTICIPATED 2018-2023 (SQ. FT. M) 33
CHART 18: LONDON OFFICE DEVELOPMENT PIPELINE: CITY, WEST END, MIDTOWN, DOCKLANDS AND OTHER AREAS: 2018-2022 (SQ. FT. M) 34
TABLE 19: LONDON OFFICE MARKET: KEY SCHEMES IN DEVELOPMENT – SIZE, MAIN DEVELOPER, COMPLETION DATE 36
CHART 20: UK OFFICE CONSTRUCTION CONTRACT AWARDS BY REGION 2018 (%) 37
CHART 21: REGIONAL OFFICE CONTRACTS (EXCLUDING LONDON) IN THE PIPELINE 2019-2029 BY VALUE (£M) AND NUMBER OF CONTRACTS 38
CHART 22: UK OFFICE CONSTRUCTION CONTRACTS IN THE PIPELINE BY REGION (AS AT MID APRIL 2019) (%) 39
CHART 23: REGIONAL OFFICE DEVELOPMENT PIPELINE: TOTAL/SPECULATIVE DEVELOPMENT SPACE ANTICIPATED 2019-2021 (SQ. FT. M) 40
CHART 24: REGIONAL OFFICE DEVELOPMENT PIPELINE: TOTAL/SPECULATIVE DEVELOPMENT SPACE ANTICIPATED 2019-2021 (SQ. FT. M) BY CITY/REGION 40
CHART 25: BIRMINGHAM OFFICE DEVELOPMENT PIPELINE: TOTAL/SPECULATIVE DEVELOPMENT SPACE ANTICIPATED 2019-2025 (SQ. FT. M) 41
CHART 26: BRISTOL OFFICE DEVELOPMENT PIPELINE: TOTAL/SPECULATIVE DEVELOPMENT SPACE ANTICIPATED 2019-2021 (SQ. FT. M) 42
CHART 27: CARDIFF OFFICE DEVELOPMENT PIPELINE: TOTAL/SPECULATIVE DEVELOPMENT SPACE ANTICIPATED 2019-2028 (SQ. FT. M) 43
CHART 28: EDINBURGH OFFICE DEVELOPMENT PIPELINE: TOTAL/SPECULATIVE DEVELOPMENT SPACE ANTICIPATED 2019-2020 (SQ. FT. M) 44
CHART 29: GLASGOW OFFICE DEVELOPMENT PIPELINE: TOTAL/SPECULATIVE DEVELOPMENT SPACE ANTICIPATED 2019-2023 (SQ. FT. M) 45
CHART 30: LEEDS OFFICE DEVELOPMENT PIPELINE: TOTAL/SPECULATIVE DEVELOPMENT SPACE ANTICIPATED 2019-2022 (SQ. FT. M) 46
CHART 31: MANCHESTER OFFICE DEVELOPMENT PIPELINE: TOTAL/SPECULATIVE DEVELOPMENT SPACE ANTICIPATED 2019-2023 (SQ. FT. M) 47
CHART 32: NEWCASTLE OFFICE DEVELOPMENT PIPELINE: TOTAL/SPECULATIVE DEVELOPMENT SPACE ANTICIPATED 2019-2021 (SQ. FT. M) 48
TABLE 33: REGIONAL OFFICE MARKET: KEY SCHEMES IN DEVELOPMENT – SIZE, MAIN DEVELOPER, COMPLETION DATE 50
CHART 34: UK OFFICE MARKET – TOTAL TAKE-UP LEVELS: 2009-2018 (SQ. FT. M) 53
CHART 35: UK OFFICE MARKET: TAKE-UP BY END USE SECTOR 2018 (%) 54
CHART 36: UK OFFICE MARKET – AVAILABILITY 2009-2018 (SQ. FT. M) AND VACANCY RATE (%) 56
CHART 37: AVERAGE UK OFFICE RENTS 2015-2020 (£/SQ. FT. M) 57
CHART 38: REGIONAL OFFICE MARKET – TAKE-UP LEVELS (SQ. FT. M) BY CITY 2018 58
TABLE 39: REGIONAL OFFICE MARKETS – KEY FUNDAMENTALS 2018-19 60
CHART 40: CITY OFFICE MARKET – TOTAL TAKE-UP LEVELS: 2009-2018 (SQ. FT. M) 68
CHART 41: CITY OFFICE MARKET: TAKE-UP BY END USE SECTOR 2018 (%) 69
TABLE 42: CITY OFFICE PRIME RENTS: 2009-2018 (£/SQ. FT.) 69
CHART 43: WEST END OFFICE MARKET – TOTAL TAKE-UP LEVELS: 2009-2018 (SQ. FT. M) 70
CHART 44: WEST END OFFICE MARKET: TAKE-UP BY END USE SECTOR 2018 (%) 71
TABLE 45: WEST END OFFICE PRIME RENTS: 2009-2018 (£/SQ. FT.) 72
CHART 46: DOCKLANDS OFFICE MARKET – TOTAL TAKE-UP LEVELS: 2009-2018 (SQ. FT. M) 73
CHART 47: DOCKLANDS OFFICE MARKET: TAKE-UP BY END USE SECTOR 2018 (%) 73
TABLE 48: DOCKLANDS OFFICE PRIME RENTS: 2009-2018 (£/SQ. FT.) 74
TABLE 49: TOP HIGH-RISE OFFICE SCHEMES IN THE UK PIPELINE 76
TABLE 50: LONDON PLAN – DEMAND FOR OFFICE-BASED EMPLOYMENT AND FLOOR-SPACE 2016-2041 81
TABLE 51: MCIL2 – INDICATIVE CONTRIBUTIONS BY END USE SECTOR AND BY CONTRIBUTION AREA (£/SQ. M.) 83
TABLE 52: BREAKDOWN OF NON-DOMESTIC BUILDINGS’ EMISSIONS BY SECTOR 86
TABLE 53: BREAKDOWN OF NON-DOMESTIC BUILDINGS’ EMISSIONS BY SECTOR 87
TABLE 54: COMMERCIAL OFFICE CONSTRUCTION COSTS – 2018 (£/SQ. M. GIA) 91
CHART 55: OFFICE CONTRACT AWARDS 2018 – APPROXIMATE SHARE BY CONTRACTOR 99
TABLE 56: LEADING ARCHITECTS IN THE COMMERCIAL OFFICE SECTOR 2019 114
TABLE 57: LEADING DEVELOPERS IN THE COMMERCIAL OFFICE SECTOR 2019 117
We have over 30 years
experience offering market research services.
AMA Research have a team of in-house researchers with recognised marketing qualifications and extensive Marketing and Market Research experience across a wide range of disciplines, and each project is managed in-house by an experienced member of staff.
Please phone us or email us whenever you need our help.
Due to the high volume of reports published, we cannot provide a sample for each report. However, if you’d like to see an example of an AMA Research report, you can find some recent sample reports by clicking here.
You can place an order online, by telephone, by email or by post.
• Ordering online
To order using the website, please go to www.amaresearch.co.uk and navigate through to the report you would like to order. Once on the report page, select the format and licence type, and click on the ‘order now’ button. This will add the report to the shopping basket, where it will remain until you proceed to checkout or close your browser.
You can access your shopping basket from the ‘my basket’ link in the top right hand corner of the page. Once you have finished shopping, go to the basket where you can review your order. If you wish to proceed, just click the checkout button to complete your details and input payment details.
Please note that online orders are also subject to the delivery times outlined above – you will not be able to access your report until it has been added to your account by a member of the customer services team.
• Ordering by telephone
Call +44 (0)1242 235724 during office hours to speak to a customer service representative.
• Ordering by email
Email your order to [email protected]. Remember to include the billing address and preferred payment method, as well as the promotional code and purchase order number, if applicable. A customer service representative will confirm your order within 24 hours by email or phone.
• Ordering by post
Post your order to:
AMA Research Ltd
2.2 Montpellier House
Montpellier Drive
Cheltenham
GL50 1TY
United Kingdom
We accept the following methods of payment:
• Credit/Debit card – we accept Visa, MasterCard, American Express, Diners Club and JCB debit and credit cards. We use Sage Pay to process all card transactions – when selecting this option, you will be redirected to the Sage Pay’s secure payment page. Once the transaction is complete you will receive a paid invoice and card receipt via email. You may also call us with your card details.
• Invoice – AMA Research can issue an invoice to UK based companies that wish to pay by bank transfer. This is sent to customers by email only, but if required a hard copy can also be sent by post. Invoices are payable within 30 days of the invoice date, and after this period, AMA Research may, at its discretion, add interest of 2% to the final total.
Please note that for non-registered UK companies or individuals without limited company status, and companies based outside of the UK, we normally require payment before the report can be released – either by credit card or bank transfer against the invoice.
Card and bank transfer payments are made in Pounds Sterling only, unless otherwise arranged. Please contact us if you wish to pay in Euros or US dollars. In this case an additional £15 fee will be added to your order to cover bank charges.
Each of our reports provide an in-depth look into the market that is reviewed, and reports will usually contain analysis and data relating to market size; market structure; key products; product mixes; leading suppliers; distribution structure and key applications or market sectors. However, the structure varies depending on the focus of the report. You can always view the contents listing, including a full list of all charts and tables, for each individual report on our website, which will give you an idea of the structure of the particular report you are interested in.
Our report focus on B2B usage, therefore do not generally incorporate consumer data. All reports begin with an executive summary highlighting the key points from the report.
We may offer discounts for purchases of 3+ reports in the same transaction. Please contact us for details, or check out the subscriptions page on our website for information about our great value report bundles and related purchase options.
Our reports come with a single user licence, which allows for access on a single computer. However, AMA Research offers a range of different licence options to suit your requirements. For more information on the licence options, please click here.
We have over 30 years
experience offering market research services.
AMA Research have a team of in-house researchers with recognised marketing qualifications and extensive Marketing and Market Research experience across a wide range of disciplines, and each project is managed in-house by an experienced member of staff.
Please phone us or email us whenever you need our help.
Tell us what you are looking to achieve & we will aim to provide the best solution and price. Rather speak to someone?
Call 01242 235724.
We’ll do our best to respond within 4 working hours.
If you need a quicker response, please call us on
01242 235724.
