If commercial property was to have a summer party, how would it look?
The Shard, Cheesegrater and Walkie-Talkie would surely stride confidently onto the dance floor, showing off their as yet unfinished but ever-improving commercial property physiques.
Planning processes would go to the bathroom in twos, to talk at length about their forthcoming makeover by government experts, excitement at being regularly featured in the media perhaps mixed with apprehension as to how the final cosmetic adjustments will look.
Amid all this, one member of the commercial property class may prefer to lean on the bar, having suffered an awkward, adolescent period of stop-start growth spurts. Riverside South, in Canary Wharf, remains an enigma in commercial property. It is the single largest office development under construction in Europe, a projected 335,000 sq ft when complete. The problem is that nobody seems to know when that will be. The original proposal of two buildings, 214m and 189m high, was approved in 2004. In 2007, this was revised, to one building of 235m, which would make it the tallest tower in Canary Wharf, and one of 185m. JP Morgan acquired a 999-year lease for £237m in 2008 and, a year later, work began on the basement slab for Tower 1.
In 2010, Riverside South’s confidence was dented after the investment bank rejected it as its new headquarters, instead choosing the charms of 25 Bank Street. At that stage, only the groundwork was completed at the site. JP Morgan now reportedly sees the site as an investment worth holding, offering a commitment only to complete to street level. After that, commercial property developers are anticipated to take stock of the economic climate, before reconfiguring plans accordingly.
Latest reports estimate the next stage in construction is to commence ‘in the next six months’. Until then, Riverside South seems set to remain at the edges of the commercial property scene, propping up the bar and too nervous to let itself truly enjoy the party.
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