COMMERCIAL
Developer confidence improving despite forecast rise in supply chain insolvencies
For both new builds and ‘cut and carve’ redevelopments, we are seeing a gradual increase in market confidence, leading to greater willingness among developers to start projects without major pre-lets being a prerequisite.
This improvement in mood is driven by a general shortage in the market of high-quality stock in prime locations, and by growth in future rental rates.
Separately, there is a strong uptick in new projects that are driven by the decarbonisation agenda; in many cases, these projects are being undertaken around existing tenants in live buildings. While implementing decarbonisation measures, developers are also taking the opportunity to improve building amenities with upgrades and more widespread finishes.
Some of our clients in the commercial occupier market are starting to measure the impact of working from home on the younger generation and the potential limiting effects on their personal and professional development. It will be interesting to see whether this leads to a greater push to get workers back into the office.
Construction insolvencies in the supply chain are forecast to continue to rise with subcontractors suffering the most, giving cause for concern in terms of market capacity and fears of localised cost escalations. While inflation has reduced in recent months, prices remain high when compared to previous years.
LONDON, UK
TBC.London
RLB’s cost management experts played a central role in the transformation of a 1990s building on the south bank of the River Thames into one of London’s first net zero operational carbon workspaces. TBC.London, which overlooks Tower Bridge, is an exemplar project that demonstrates the highest levels of sustainable construction and energy efficiency.
