In the prosperous pre-credit crunch period, skyscrapers seemed to be London’s must-have accessory for the up and coming business. The Gherkin was gracing the covers of glossy magazines and drawing admiring glances from architects far and wide. The Cheesegrater, the Shard and the Walkie-Talkie were in development, set to join the Gherkin on the commercial property catwalk.
Then the crash happened. Some commercial property schemes were put on hold, scaled back or cancelled, reflecting the new ‘Age of Austerity’ fashions being sported in the UK economy.
In January, real estate investment trust Hammerson plc scrapped plans for a 32-storey tower, downsizing to a 15-storey office building; Martin Jepson, Hammerson MD stated they were opting to go ‘back to the drawing board’ rather than proceed with a tall commercial property that was ‘proving very expensive’.
Now Gherkin architect Ken Shuttleworth has declared ‘the age of bling is over’ for the commercial property sector. Cost saving is now the primary motivation and ‘if you can build something for half the price, you will’.
It seems for developers, investors and tenants, as confidence in the economy has faded, so has the allure of tall buildings.
Developers know that a tall commercial property requires stronger frames, adding £50–150 per sq ft to costs compared to a lower-level property with the same area.
Investors requiring quicker returns are less likely to finance a tall building where tenants can only move in and start paying rent once the whole tower is completed.
Tenants are also being put off by the reported 15–20% extra it costs for a tenancy in a tall building.
The trend of moving away from tall commercial property is not going to be followed by everyone. Stuart Lipton, a developer from Chelsfield Partners LLP and responsible for much of Broadgate’s development in the 1980s, intends to adopt techniques from the US, moving to ‘a more disciplined approach to architecture and standardised components’.
Perhaps skyscrapers are not destined to join flares and paisley ties at the charity shop just yet.
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