(Commonwealth_Europe) The City of London’s financial district has recently approved the construction of a towering 73-story skyscraper, set to match the height of the Shard, currently the tallest building in Western Europe, located just a mile to the south. This new tower, slated to rise to 309.6 meters (1,015.75 feet), reflects the city’s continued confidence in the office market, even as the sector grapples with challenges in the aftermath of the COVID-19 pandemic. The development marks an important step in London’s post-pandemic recovery, signaling that, despite a downturn in the commercial property market, planners are still optimistic about demand for premium office space.
In 2016, the City of London local authority initially approved the skyscraper, named 1 Undershaft, at a slightly smaller height, but faced delays and did not begin construction. After several revisions to the plans to better address the changing needs of the office market, particularly in response to the shifts in work habits brought about by the pandemic, the City of London local authority approved the project. Now, the redesigned building is ready to provide over 154,000 square meters (roughly 1.66 million square feet) of office space. Additionally, the top floors will include spaces dedicated to children’s education and a publicly accessible garden, adding a unique feature to this towering office complex.
Investor Aroland is driving the project, which will require the demolition of an existing, smaller tower on the site. However, it has drawn criticism, especially from conservation groups concerned about its impact on the surrounding area. Historic England, a government advisory body for conservation matters, voiced its concerns in February, stating that while the revised design did not alter its overall scale or impact, the tower would severely degrade the public spaces nearby. These concerns reflect broader anxieties over the rapid transformation of London’s skyline, with many arguing that new, high-rise developments are increasingly overshadowing the city’s historic landmarks, such as St. Paul’s Cathedral.
The approval of the 1 Undershaft tower, despite these criticisms, is considered a strong signal of confidence in London’s office market and its broader economy. The capital’s office sector, like many others globally, has faced challenges in recent years due to rising borrowing costs and the shift toward remote and hybrid working arrangements. The demand for office space has been weaker, particularly in central areas, with very few major office properties changing hands this year. However, high-end, premium office spaces have proven more resilient, and the construction of new office buildings in the City of London has bucked the general trend of slowdowns seen in other parts of the capital. According to a report from Deloitte, between April and September this year, the number of new office construction starts in the City of London increased by 7%, whereas other central London areas saw declines in new developments.
This growing confidence in the office market contrasts with a broader pattern of cautiousness. Investors like Nuveen and Brookfield, who own significant office properties in London, have been attempting to sell their towers, presenting a major test of the appetite for investment in the city’s office space. The approval of 1 Undershaft, however, shows that some investors are still bullish on the future of the market, even amid uncertainty. As Shravan Joshi, chairman of the City of London Corporation’s Planning and Transportation Committee, noted, the approval of yet another office development in the City underscores the ongoing belief in the long-term prospects of the London real estate market and the wider UK economy.
Nonetheless, the approval also comes amid growing concerns about the impact of these new buildings on the city’s visual and architectural character. Many argue that the skyline of the City of London is becoming increasingly cluttered with large, glass-and-metal structures that dwarf the city’s historic buildings. Critics worry that these developments are eroding the city’s unique heritage and creating a disjointed urban landscape that fails to respect its historic surroundings. The debate over the balance between modern development and the preservation of historic structures is expected to continue as London moves forward with plans to reshape its skyline in the coming years.
While the City of London’s approval of the 1 Undershaft Tower is a reflection of the optimism that persists in the city’s office market, it also highlights the ongoing tensions between progress and preservation. The proposed tower, if constructed, will not only become a landmark in its own right, standing alongside the Shard as one of Europe’s tallest buildings, but also serve as a symbol of the city’s resilience in navigating the complexities of the post-pandemic world. Whether the tower’s impact on the city’s historic fabric will be seen as a positive contribution or a disruptive force will likely remain a subject of debate for years to come.
