Offices in the
City of London
Section 1 of 4: Introduction and B1 Office Floorspace
Published by the City of London Corporation,
Department of the Built Environment,
October 2014
Data: 31st March 2014
Offices in the City of London
Contents
Introduction.............................................................................................................................. 2
Office Policy Framework .................................................................................................... 2
Office Floorspace in the City of London .......................................................................... 3
The Document Structure .................................................................................................... 3
B1 Office Floorspace ................................................................................................................ 4
Data Assembly and Measurement Methodology ........................................................... 4
City-Wide Distribution of B1 Office Floorspace ............................................................. 4
Office Floorspace Change .................................................................................................. 6
Employment Specialisms in the City of London ............................................................ 7
Floorspace Size Bands ......................................................................................................... 8
B1 Office Floorspace by Office Study Zones ..................................................................... 11
Office Study Zones ............................................................................................................ 11
B1 Office Floorspace Density by Office Study Zones................................................... 12
Total B1 Office Floorspace by Office Study Zones ....................................................... 14
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Offices in the City of London
Introduction
Office Policy Framework
The City of London is internationally recognised as the world’s leading financial and
business services centre, employing 392,400 people across the square mile (Source:
ONS Business Register Employment Survey 2013).
The City of London Core Strategy sets out the vision and key policies for
planning the City of London. Core Strategy Policy CS1 states:
“To ensure the City of London provides additional office development of the highest
quality to meet demand from long term employment growth and strengthen the
beneficial cluster of activities found in and near the City that contribute to London’s
role as the world’s leading financial and business centre, by:
…………………………………………………………………………………………..”
(See the Core Strategy for the full policy text)
The Core Strategy promotes the protection of existing office accommodation, the
assembly and protection of large sites suitable for the development of additional
office sites, as well as the temporary use of vacant office buildings. Although much
attention is given to the needs of larger companies and the need for larger
floorplates, the role of small and medium-sized companies cannot be underestimated
and needs to be managed in the context of providing a range of suitable office
accommodation to suit business needs.
In support of this policy, it is important to have a detailed understanding of the
amount of office accommodation present in the City, its distribution throughout the
City (including how this may affect the Key City Places policies of the Core Strategy)
and the distribution of different sizes of office accommodation present in the
different areas of the City.
The City of London Local Plan will supersede the Core Strategy upon adoption in
early 2015.
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Offices in the City of London
Office Floorspace in the City of London
This document sets out:
• The methodology for the measurement of the office floorspace data used
in the document. The assembly and provenance of the data is discussed.
• The City-wide spatial distribution of Office floorspace and how this
informs development of the Core Strategy office policy.
• A detailed analysis of the distribution of Office floorspace in a number of
Office Study Zones, with reference to the Key City Places policies of the
Core Strategy.
Projections for the delivery of Office stock in future years are set out in the City of
London Core Strategy Monitoring Paper - Offices. This is complemented by
details of the amount of permitted, under construction and completed office
floorspace set out in the latest Development Info document.
The Document Structure
This document is divided into 4 sections, all available to download from the Office
Stock section of the Land Use web page:
•
•
•
•
Section 1: Introduction and B1 Office Floorspace
Section 2: Office Study Zones – North of the City, Cheapside & St Paul’s,
Eastern Cluster
Section 3: Office Study Zones – Aldgate, Thames & The Riverside
Section 4: Office Study Zones – The Rest of the City, and Appendices.
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Offices in the City of London
B1 Office Floorspace
Data Assembly and Measurement Methodology
For the purposes of this document, a complete dataset of Office Floorspace data (Use
Classes Order B1) has been assembled for all office addresses in the City. A number
of sources have been used:
•
•
•
Land Use Survey (2000).
Development Monitoring Completions (period 1990-2014)
Valuation Office Agency (VOA) data.
Further details of the data sources used as well as the detailed methodology used for
the data assembly are set out in Appendix 1.
Further details of the methodology for the measurement and classification of B1
Office floorspace is set out in Appendix 2.
City-Wide Distribution of B1 Office Floorspace
From the sources outlined in Appendix 1, the estimated total B1 Office floorspace for
the City at 31st March 2014 is 8,624,000m2. The distribution of B1 Office floorspace
throughout the City is illustrated in Map 1. It shows the highest concentration in
office space, both in terms of number of office addresses and quantity of floorspace,
is in the eastern part of the City. There are office buildings in virtually all areas of the
City, the main exceptions being where other major land uses dominate such as in the
residential areas at the Barbican and Golden Lane Estates and also around Smithfield
Market and St Bartholomew’s Hospital.
Large offices are spread throughout the City but are greater in number in the north
and east of the City including the Eastern Cluster and Broadgate Estate; smaller
offices are more prevalent in mixed use areas such as Smithfield, the Temples and
other Conservation Areas.
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Offices in the City of London
Map 1: B1 Office Floorspace Distribution in the City of London
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Offices in the City of London
Office Floorspace Change
The estimated change in the total stock of B1 Office floorspace stock in the City for
the period 2011-2014 is illustrated in Graph 1 and summarised in Table 1.
Graph 1: Office Floorspace change 2011-2014
Total B1 Office Floorspace (m2)
2011
2012
2013
2014
9,007,000
8,990,000
8,850,000
8,624,000
Table 1: Office Floorspace change 2011/2014
At the 31st March 2013 the Office Stock Estimate of B1 floorspace was 8,850,000m2.
During the period 1st April 2013 to 31st March 2014 there was a net decrease of
226,800m2. This is a continuation of the decrease recorded since 2011 due to a high
level of demolished office floorspace as part of the initiation of redevelopment
schemes, plus a high level of small scale change of use from offices to a range of
housing, hotel, retail, and community uses. This trend was offset by a small level of
completed office floorspace.
This results in an estimated office stock of 8,624,000m2 as at 31st March 2014. For
further details of the timeline of B1 Office stock estimates see the latest Development
Info document. For analysis of the projected B1 Office floorspace in the development
pipeline, see the latest Office Monitoring Report.
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Offices in the City of London
Employment Specialisms in the City of London
The provision of office space has developed to support a series of specialist business
clusters. Map 2 shows Workplace Population Distribution in the City of London in
2011 (A). Also shown is the Workplace Population Distribution for Professional &
Estate Activities (B) and Financial & Insurance Activities (C). These are the two
largest industrial sectors in the City of London, accounting for 70% of the workforce.
This data is sourced from the Census of Population and analysed in the paper City of
London Workforce CENSUS 2011 – Analysis by Industrial Sector.
Map 2: Workplace Population Distribution in the City of London – Overall (A), Professional & Estate
Activities (B), Financial & Insurance Activities (C)
Source: Office for National Statistics © Crown Copyright 2014
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Offices in the City of London
The distribution of workforce population within the City of London (Map 2) is
similar to the distribution of B1 Office floorspace shown in Map 1 – with the greatest
numbers of workers in the eastern part of the City and fewer workers in areas where
other non-office land uses predominate such as the residential areas at the Barbican
and Golden Lane Estates and also around Smithfield Market and St Bartholomew’s
Hospital.
Those working in Financial and Insurance activities are more concentrated in the
central and eastern parts of the City whilst those working in Professional & Estate
activities including legal activities are more concentrated in the western part of the
City.
Floorspace Size Bands
The frequency at which different floorspace sizes for office addresses occur across the
City is illustrated in Graph 2A and summarized in Table 2. The relative change over
the period 2011-2014 is also shown. Office addresses providing less than 1,000m2 of
floorspace account for the largest total number of office addresses in the City (36% of
the total), with the frequency of offices addresses found in each size band becoming
fewer for increasing floorspace sizes.
The total number of office addresses has decreased from 3,482 to 3,398 over the
period 2011-2014, a loss of 84 sites (2.4% of the number). This decrease is found
within all floorspace size bands but the frequency of the smallest size bands have
decreased to the greatest extent. The number of office addresses with less than
1,000m2 of floorspace has decreased by 36 (6.8%) and those with 1,000-2,499m2 of
floorspace by 21 (6.9%). In contrast for the four size bands covering the range
10,000m2 to 100,000m2 there was minor decrease of 9 units (3%) over the period 20012014.
The total amount of floorspace provided by each of the different floorspace size
bands is illustrated in Graph 2B and summarized in Table 2. The relative change
over the period 2011-2014 is also shown. Although fewer in number, the greatest
percentage of floorspace is provided by larger office addresses. Office addresses
with 10,000-24,999m2 of floorspace provide 32% of the total in the City, with larger
size bands providing a further 38% of the total.
The total amount of floorspace provided by each of the different floorspace size
bands has decreased by similar percentages over the period 2011-2014.
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Offices in the City of London
Graph 2: Frequency of office addresses in the City (A) and total floorspace provided (B) by floorspace
size bands
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Offices in the City of London
Floorspace Size (m 2 )
Frequency
Total Floorspace (m 2 )
2011
2013
2014
2011
2013
2014
0 - 999
532
506
496
240,000
227,000
219,000
1,000 - 2,499
305
294
284
496,000
477,000
463,000
2,500 - 4,999
192
190
185
704,000
695,000
674,000
5,000 - 9,999
182
173
168
1,338,000
1,273,000
1,240,000
10,000 - 24,999
177
174
171
2,810,000
2,754,000
2,724,000
25,000 - 49,999
66
66
64
2,278,000
2,284,000
2,218,000
50,000 - 99,999
16
16
15
1,031,000
1,031,000
976,000
100,000+
Total
1
1
1
110,000
110,000
110,000
1,471
1,420
1,384
9,007,000
8,850,000
8,624,000
Table 2: Frequency of office addresses in the City and total floorspace provided by floorspace size
bands
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Offices in the City of London
B1 Office Floorspace by Office Study Zones
Office Study Zones
The City has been divided into six Office Study Zones for analysis of the distribution
of B1 Office floorspace throughout the City. These zones are based on the
approximate boundaries for the Key City Place policies of the Core Strategy. The
larger zones have been subdivided into a number of sub-areas to focus on the
different patterns of floorspace size and distribution within different character areas.
These sub-areas have been amended from previous Office Info reports to provide a
more detailed analysis of the differences between different character areas within the
larger zones. The Office Study Zones (including sub-areas) are illustrated in Map 3.
Map 3: Office Study Zones and sub-areas
The Office Study Zones and sub-areas are:
• The North of the City – Core Strategy Policy CS5, affected by the Crossrail
development. There is significant existing office stock and growth potential
outside of the existing housing areas.
- Holborn/Newgate/Old Bailey - The west of the zone, predominantly
medium to large offices, subject to current redevelopment activity.
- Smithfield Mixed Use Area - An area of competing interests due to the
need to maintain the mixed use character of the area including Smithfield
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Offices in the City of London
•
•
•
•
•
Market and St Bartholomew’s Hospital, and housing whilst delivering
improvements at Farringdon to address the opening of Crossrail.
- Barbican/Golden Lane - Predominantly a housing area with negligible
office space.
- London Wall - Diverse area of predominantly medium to large offices,
subject to current redevelopment activity and affected by Crossrail
development at Liverpool Street.
- Broadgate Area - The largest private office estate in the City of London.
Subject to partial current redevelopment activity.
- Middlesex Street - The east of the zone, mostly smaller office addresses.
Cheapside & St Pauls - Core Strategy Policy CS6. This area in particular is
restricted by height limitations from Protected Views Policy CS13 as well as
being a Principal Shopping Centre with a focus upon the delivery of A1 retail
floorspace.
Eastern Cluster - Core Strategy Policy CS7. Key area for delivery of Tall
Buildings to provide growth and modernisation of office stock and to meet
targets for new office stock delivery.
Aldgate - Core Strategy Policy CS8. Significant potential for office
development in a mixed-use area. Major changes are proposed as part of the
Aldgate Project.
Thames & the Riverside - Core Strategy Policy CS9. Competing interests for
a range of uses in this area, including offices and also permitting residential
and hotel development in appropriate locations.
- Temples - The Temples form two of the Inns of Court, providing
accommodation for the legal profession.
- Zones 1-7 - These zones represent different character areas along the
riverside.
The Rest of the City:
- West - The remaining area of the City west of Farringdon Street,
- West Central - The remaining area of the City between Farringdon Street
and Queen Street ,
- East Central - The remaining area of the City between Queen Street and
King William Street/Gracechurch Street,
- East - The remaining area of the City east of King William Street/
Gracechurch Street.
B1 Office Floorspace Density by Office Study Zones
Due to the large size differences between the Office Study Zones, the most
appropriate method of comparison between Office Study Zones is a comparison of
the differences in density of B1 Office floorspace as illustrated in Graph 3 and
summarised in Table 3. The average density throughout the City is estimated at
29,500m2 of B1 Office floorspace per hectare.
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Offices in the City of London
Graph 3: B1 Office Floorspace Density by Office Study Zones
Office Study Zone
B1 Office Floorspace Density (m2/ha)
North of the City
26,100
Cheapside & St Paul's
31,800
Eastern Cluster
51,300
Aldgate
16,700
Thames & the Riverside
18,700
Rest of the City
35,700
City of London Average
29,500
Table 3: B1 Office Floorspace Density by Office Study Zones
The Eastern Cluster is by far the zone of highest B1 Office floorspace density with an
estimated 51,300m2 per hectare, well above the City average. The Rest of the City
zone and Cheapside & St Paul’s have densities slightly above the City average. The
North of the City has an average density of 26,100m2 per hectare, slightly below the
City average but with considerable variation between the identified sub-areas. This
variation is discussed in greater detail later. The Thames & the Riverside and
Aldgate zones have a significantly lower density of B1 Office floorspace than the City
average.
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Offices in the City of London
Total B1 Office Floorspace by Office Study Zones
The estimated total B1 Office floorspace for the City is 8,624,000m2. The total B1
Office floorspace for each of the Office Study Zones is illustrated in Graph 4 and
summarised in Table 4.
Note: This is a measure of the absolute total floorspace and takes no account of the different
sizes of the Office Study Zones.
Graph 4: B1 Office Floorspace by Office Study Zones
Office Study Zone
North of the City
Cheapside & St Paul's
Eastern Cluster
B1 Office Floorspace (m2)
Percentage of City total (%)
2,975,000
34.5
866,000
10.0
1,201,000
13.9
Aldgate
169,000
2.0
Thames & the Riverside
843,000
9.8
Rest of the City
2,570,000
29.8
City of London Total
8,624,000
100.0
Table 4: B1 Office Floorspace by Office Study Zones
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Offices in the City of London
The North of the City has the largest amount of B1 Office floorspace, an estimated
34.5% of the City total, with the Rest of the City zone having 29.8% of the total. The
Eastern Cluster accounts for just 13.9% of the total estimated B1 Office floorspace,
Cheapside & St Paul’s and Thames & the Riverside have 10% and 9.8% respectively,
with Aldgate just 2%.
There is considerable variation between the identified sub-areas of the zones. This
variation is discussed in greater detail later.
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