Despite the shift towards remote work during the post-pandemic era, demand for office space in the City of London continues to grow. Between 2021 and 2022, there was a 5% increase in
City jobs, bringing the workforce to 615,000. The latest data reveals a 25% increase in planning applications compared to the previous year.
The impact of remote working for three or four days a week has been mitigated, in part, by the 5% workforce expansion. The City of London Corporation highlighted encouraging signs despite ongoing economic uncertainty.
The Corporation received 1,023 planning applications up to September this year, compared to 820 during the same period last year. Over 500,000 square meters of office space is currently in the planning phase, alongside a similar amount under construction.
The Corporation unveiled computer-generated images depicting 11 new buildings, providing a glimpse of the evolving Square Mile skyline by 2030.
While finance remains dominant, there was a 27% increase in tech companies. Legal and insurance firms led the return to office use, focusing on in-person training and mentorship.
Shravan Joshi, chairman of the City of London's planning and transport committee, stated that the City is at a "tipping point," where new jobs, businesses, and industries are balancing remote work. The presence of a young population, with over half the workforce under 30, international workers, and the prominence of insurance and legal sectors, is driving the return to the workplace.
Efforts to "reinvent Fridays" and activate weekends with cultural attractions and restaurant offers have led to higher footfall than pre-pandemic levels.
Although some corporate giants, such as HSBC and Clifford Chance, are relocating their headquarters to the City from Canary Wharf, Mr. Joshi downplayed the idea of fierce competition between the two areas. He emphasized that both areas are mature enough to recognize the interconnected nature of their success.
The increased uptake of office space is positive news for numerous small businesses in the area. James Hennebry, the owner of Rosslyn, which operates three coffee shops in the City, expressed optimism about the future, with the company actively seeking new sites within the Square Mile. Photo by GJMarshy, Wikimedia commons.