1、Positioning London for the Future:Quantum vs Quality35 79 1113 15 1719T H E LONDON RE P O R T2K N I G H T FRANK2 0 2 3CONTENTSQuantifying Obsolescence RiskQuality v Quantum Whats Next for Occupier Demand?A Global Education HubRenegotiating Headleases:Navigating a Path to Sustainable OfficesFinding t

2、he Right BalanceCuration Over Cookie-Cutting Re-inventing Londons Retail Floorspace:Part oneCuration Over Cookie-Cutting Re-inventing Londons Retail Floorspace:Battersea Power Station case studyCompeting for Global CapitalBack to Pricing Basics3T H E LONDON RE P O R TK N I G H T FRANK2 0 2 3KNIGHTFR

3、ANK.COM/LONDON-REPORTShabab QadarLondon Research PartnerQUANTIFYING OBSOLESCENCE RISKThe legal requirement to improve EPC ratings raises the obsolescence risk for 7m sq ft of institutional grade leases due to expire by 2027.A structural shift in demand for better quality buildings is unlikely to be

4、filled by the current pipeline under construction,providing development opportunities.Quantifying obsolescence in London office marketsAcross London,approximately 140m sq ft of office space has an EPC rating below grade C,51%of total office floorspace,with the highest proportion in Rest of Docklands

5、(70%),Knightsbridge/Chelsea(68%)and Victoria(67%).In Londons three core CBDs,Canary Wharf ranks favourably with 46%of certified floorspace below grade C,City Core is at 55%and West End Core at 60%.London-wide,this represents 60m sq ft of floorspace space requiring upgrading to improve energy efficie

6、ncy.Impending lease expiries with the greatest obsolescence riskBy 2027,around 7m sq ft of institutional grade leases in London with an EPC rating below grade C,are due to expire.This is the floorspace with the highest re-letting risk,requiring capital expenditure to retrofit or refurbish to be fit