Midtown is the only London village to show a dip in development activity compared to six months ago. DJD's London crane survey released today shows that the area registered a fall of 28% on figures compiled last winter. So while all the other markets were notching up sizeable construction starts, Midtown took a tumble. The full report is here.
It is against a backdrop of increased construction in every other London market and one in which DJD says development activity is rippling out of the centre. Midtown has always traded on filling the gap between the West End and the City, offering space at cheaper rents. So what does it mean for the inbetweener market? Is the market growing-up or will occupiers just out-grow it?
On the face of it the numbers look good. CBRE reported recently that the strength of central London offices was driven largely by Midtown (£) with more than a bit of help from West End too admittedly. Some might argue that a bit of a pinch in the supply might push returns even further leading to rental increases. But can Midtown just rely on playing the affordability card?
Other fringe locations are hot on its heels and DJD's report shows that development activity is spreading to Kings Cross (four new starts) and Southbank (two new starts and The Shard). If they've got the space could occupiers simply opt for what are increasingly becoming not so untested locations.
Inbetweeners pic by rustyallie
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