Roundtable Event: London’s Development Market Challenges
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Key Takeaways from the Event:

Optimism for London Market: Despite challenges, London was viewed positively as a resilient and forward-thinking investment destination.

Shortage of Grade A Space: Noted a significant shortage of Grade A office space, with Grade B assets facing potential obsolescence.

Cost of Assets: The high cost of assets is identified as a major barrier hindering investors from making investment decisions or initiating projects, waiting for someone to take the jump.

Navigating Planning and Legislation: Highlighted challenges in planning processes and suggested the need for streamlining and collaboration between stakeholders.

Sustainability Agenda & Future Building Requirements: Urged a stronger focus on sustainability in development, with predictions of increased demand for sustainable Grade A sites in the next five years. Discussed evolving tenant needs, emphasizing amenities, flexibility, and environmental, social, and governance (ESG) considerations.

Uncertainty in Yields and Costs: Highlighted the need for realistic cost assessments and concerns about unpredictable yields.

Interest Rates and Market Dynamics: Interest rates play a pivotal role, and a drop is anticipated to trigger a surge in developments, putting pressure on the supply chain.

Construction Innovation: Innovation in construction is seen as crucial for unlocking early-stage development, with concerns that the industry lags behind others in developing new solutions.