Londoners may soon be unlocking their own front door in one of the Capital’s former Banks or Financial Institutions as Landlords faced with the prospect of a shrinking Office Space Market consider luxury apartments as a more viable source of revenue.
Developers are lining up to take advantage of the rare opportunity to develop Prime London Office sites. Axa Real Estate Investment Managers Ltd., Berkeley Group Holdings Plc (BKG) and Heron International Inc. are all interested in building homes in the heart of Britain’s Financial Services Industry. The landscape of the Square Mile, where most of the leading Financial institutions are situated may indeed change although at the time of the report it was unclear as to whether any of the Prime Offices around Bank EC3 were under consideration.
London has seen demand for offices slump after banks cut more jobs in the U.K. than in any other country last year. Rents for Offices in the City of London are expected to fall 4 percent this year after previous predictions of a 6% increase.
Developers are said to be seeking older offices or partly developed “brownfield” sites on the fringes of the financial district to turn into housing. Present sites up for renovation include a derelict office in Moorgate into 90 residences, a 36-story residential Office Tower near the Barbican will be converted into luxury apartments and there are further plans to develop 253 apartments from Offices near Liverpool Street Station.
Axa Real Estate fund has plans to develop an office building at St Paul’s, close to the Cathedral, that will include 10,000 square feet (929 square meters) of homes as well as 60,000 square feet of offices and 20,000 square feet of retail, the insurer said in a statement. The company, which has 40 billion euros ($52.4 billion) of property under management, is looking at Offices in Clerkenwell, Farringdon and Shoreditch.
What do you think, any particular Office you’d fancy calling home?