Experts confident Heron Tower will fill-up

Grant Prior 15 years ago
Share

Property experts believe the Heron Tower will be fully occupied once Skanska completes construction next March.

The 46-storey structure is the City of London’s tallest building and brings another 439,560 sq ft of office space to the market. No lettings have been confirmed to date.

But developer Heron International chief executive Gerald Ronson was one of the few people to take a punt during the downturn and continue construction of his mega-scheme rather than put the project on hold.

The gamble appears to be paying off with rents on the rise again as a shortage of new office space in the City has been created by a dearth of new building work during the recession.

Ronson said: “Whether this is by luck or judgment, I believe that Heron Tower has come to market at the right time.”

His optimism is backed-up by experts at Jones Lang LaSalle who are highlighting a shortage of prime space in central London.

Neil Prime, Head of Markets at Jones Lang LaSalle said: “We anticipate the continued reduction of Grade A supply and therefore we will see continued rental growth. This supply led recovery will continue due to the lack of speculative development underway to be delivered in the next 2-3 years.”

A Heron International spokesman said: “Marketing only started on Heron Tower a month ago, so there’s no news on lettings at the moment, although initial interest has been strong.”

Ronson has confirmed his faith in the central London market with plans submitted for a £500m hotel, residential and retail scheme next to the Heron Tower.

The 42-storey Heron Plaza will be anchored by a Four Seasons Hotel and Residences complex containing 190 guest rooms and 120 luxury flats.

Ronson said: “This genuine mixed use centre will be a model for sustainable urban development in the Capital.  It will create a new public open space, scarce and highly valued in a densely built part of the City. It will provide much needed, unparalleled hotel and residential facilities which reflect London’s status as the financial capital of the world and support the City’s core mission as a centre for business and excellence.”

But Ronson is worried that any upturn in the economy is being concentrated in London leaving the rest of the country trailing.

He said: “I spend 12 hours, once a week, driving around the country. I don’t like what I see. We are creating a two-tier country where I fear that the consequential effects of significant unemployment will be social unrest.”

Latest news

Construction buyers report fastest downturn since 2020

Double whammy of decreasing new orders and delayed projects
15 hours ago

Bidders day for £15bn schools alliance framework

Online event to set out details of DfE alliancing framework procurement plan
18 hours ago

MPs told safety regulator delays forcing industry job cuts

Industry chief warns housing select committee that BSR is now a main block on meeting housing targets
19 hours ago

£600m delivery partner named for new hospital programme

Mace/T&T JV named programme delivery partner for £37bn new hospital plan
1 day ago

£230m Southampton waterfront scheme approved

Town Quay includes trio of 25 storey towers around new marina
19 hours ago

Planning green light for £10bn Northumberland data centre

Blackstone-backed project will create 1,200 construction jobs
2 days ago

Bauhaus block above Southwark Station gets green light

Student accommodation and affordable housing scheme replaces original office plan
19 hours ago

Police arrest plant hire fraud gang

Nine arrests after kit hired "with no intent of ever returning the machines"
2 days ago

Balfour Beatty boss Leo Quinn to step down

Group Chief Executive to be replaced by consultant AtkinsRéalis chief Philip Hoare
2 days ago

Galliford Try upgrades target as half-year profits jump 54%

Firm closes in on deal to take on ISG custodial work
2 days ago

Trespasser dies in crane fall at Willmott Dixon site

Tragedy after man breaks into £60m Manchester science park site
2 days ago

Ibstock pulls out of GRC cladding market

Materials giant blames subcontractor failures and low margins
2 days ago

Green light for 1,000-home Wolverhampton city centre regen

Phase one of ECF Smithgate scheme to start this year
2 days ago

Oval revises Manchester scheme with trio of towers

Flats doubled to 800 at reworked Albert Bridge House project
2 days ago

More repair work needed at McAlpine problem panel hotel

Contractor looking for long-term solution to loose panels
2 days ago

Redesign delays hit giant McAlpine car battery factory

Size of first building reduced and steelwork start pushed back
3 days ago

‘Affordable’ HS2 Crewe to Euston plan submitted to Treasury

Industry presses for scaled back Euston terminus and connection to Crewe
3 days ago

Regal submits plan to revive stalled London resi tower

Swiss Cottage project redesigned with second staircase and 237 flats
3 days ago

Construction boss jailed for siphoning off cash for casino

Money removed from contracting firms before they went under
3 days ago

Muse signs up to £3.2bn Solihull health campus district

Ambitious Arden Cross scheme next to HS2 Interchange advances
3 days ago

Drees & Sommer acquires RSP Consulting Engineers

Expanding consultant sees UK workforce grow to 300
3 days ago

Watkin Jones wins over £50m student digs campus upgrade

Work to start next month on phase 714-bed south London campus
4 days ago

Severfield warns on profits blaming major project delays

Steelwork firm cancels share buyback and steps up cost cutting programme
4 days ago

Administrators go in at aggregates firm Ashville

Administrators from Leonard Curtis now in charge of London based aggregates specialist
4 days ago

Costain start date for £67m Romford flyover replacement

Work to start this summer on Gallows Corner bridge rebuild
4 days ago

North West regional civils contractor in administration

Colin Briscoe Construction employed 25 staff
4 days ago

Work starts on tyres to jet fuel recycling plant

£100m Sunderland plant will produce around 30,000t of liquid fuel
4 days ago

Kier targets £400m of logistics work with Investec JV

Hemel Hempstead site marks start of new venture
4 days ago

Watchdog MPs raise alarm over HS2 Euston station plan

Public spending watchdog red flags 'no plan or timescale' for London Terminus
7 days ago

Network Rail fined £3.41m after Surbiton track worker death

30-year-old track worker Tyler Byrne was struck by a passenger train in Surbiton
1 week ago

Contractor services