There is some concern among analysts that the relatively subdued state of the office space rental market in central London at present will leave considerable portions of office space at the Shard unfilled for months to come. However, representatives of the Qatari banks that funded the development have expressed their faith in the long-term strength of the London office space market.
Sheikh Abdullah Bin Saoud Al Thani, governor of Qatar Central Bank, told Reuters: “Recovering our investment is a minor thing at the moment. We have confidence in the London market and a long relationship with London.”
Nevertheless, the relative lack of commitment to renting the offices at the Shard is likely to raise doubts about the prospects for space at other high-profile development sites around London, like the so-called Walkie-Talkie and Cheesegrater projects. Unlike with The Shard, where the development funding was sourced from private investors, most of the other significant office construction efforts across the capital have been taken on by publicly listed companies. All of this means that any lack of return investments is likely to be more of a cause for concern, as appears to be true with the Shard and its Middle Eastern backers.
Reuters’ report on the official opening of The Shard this week suggested that some potential office space tenants are unwilling to move south of the River Thames and away from the heart of London’s financial district. Although very much in the same area, the Shard sits just on the southern banks of the Thames overlooking London Bridge, whereas the so-called Square Mile lies just to the north.
Editor’s notes: As of July 2024, The Shard had just 27,031 square feet of office space available for rent.
The development attracted high-profile occupiers, including Blis, Gallup, Greenberg Traurig and Fora, which provides a range of premium, design-led flexible office space and workspace solutions such as private serviced offices and coworking memberships.