The City of London has recently approved plans for a 73-floor skyscraper that will stand at 309.6 meters, matching the height of the Shard, currently the tallest building in Western Europe. The new tower, named 1 Undershaft, is a significant development in the city’s office market, especially given the challenges posed by the pandemic and the shift towards remote work. This decision reflects the confidence of city planners and investors in the resilience of London’s real estate market and its economy.
The building, initially approved in 2016 at a slightly shorter height, had stalled until recent revisions aimed at addressing post-pandemic office needs were made. Despite criticism from conservation groups like Historic England, who argue that the tower will negatively impact the surrounding area, the project has moved forward. The planned demolition of an existing smaller tower has also sparked concerns about the preservation of the city’s heritage.
Once completed, 1 Undershaft will offer over 1.66 million square feet of office space, educational facilities for children on its top floors, and a publicly accessible garden, enhancing its community appeal. These features are designed to attract businesses andtalent, highlighting the building’s potential to revitalize the area.
The approval of this skyscraper comes amidst a challenging time for London’s office market, hit hard by higher borrowing costs and the rise of remote work. While premium spaces remain in demand, few major office properties have been sold this year, with investors like Nuveen and Brookfield testing the market with their tower sales. Despite these challenges, the City of London has seen a 7% increase in office construction starts, bucking trends seen elsewhere.
This increase in construction reflects investor confidence, with Shravan Joshi, Chairman of the City of London Corporation’s Planning and Transportation Committee, emphasizing the significance of this project for London’s economy. The development underscores the city’s enduring appeal as a global business hub, despite current economic uncertainties.
However, the project has also sparked debate about the impact on London’s skyline, with critics arguing that it adds to the clutter of generic glass and metal towers, overshadowing historic landmarks like St. Paul’s Cathedral. Balancing modern development with preserving the city’s historic character remains a key challenge for planners and developers, ensuring that progress enhances rather than diminishes the city’s heritage.
