The rate at which office space is being lost for alternative uses in London’s Westminster could affect employment in the capital, the chairman of Westminster Property Association has warned.
In a white paper released today, Daniel Van Gelder, WPA chairman and co-founder of Exemplar, said he was concerned that 5.5m sq ft of office space has been lost in the past four years including the current pipeline.
Van Gelder (pictured) said that according to industry calculations, the loss of offices, which have largely been for residential conversions, could equate to 78,000 fewer jobs in the capital.
Van Gelder added: “I fear there may be a tipping point at which the commercial heart of London becomes irreparably diminished. When big multinationals choose a new global HQ they want to be somewhere central with excellent transport connections, where they can recruit talent.”
A raft of office schemes in the West End are poised to be converted into luxury flats.
The report, Maintaining the Balance: preserving and enhancing Westminster’s role in London, states that between 2016 and 2036 Westminster is projected to gain 77,000 extra jobs.
Lack of offices could dampen this number, says the report.
However, Van Gelder added: “The problem is that once office space is lost to residential use it tends to be lost forever. Residential property tends to be sold on 999-year leases, making it extremely unlikely to ever come back into commercial use.”
The WPA chairman has devised recommendations to ease the crisis, including allowing developers to build upwards in the West End, and ensuring Westminster does not lose its exemption from new rules, which allow buildings to be converted from office to residential use without planning permission.
Some 1,400 people are due to hear details on the report at today’s annual WPA lunch.
