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The Commercial Value of Crossrail
Jun 10 2016
Darren Best
So what will the commercial value of Crossrail be?
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Crossrail is due to open towards the end of 2018/early 2019 and is to consist of 70 miles of new track length, through 37 stations that been built specifically for Crossrail’s super-fast service. Crossrail is due to cut journey times by 10% and with all its elements to hail, Crossrail has pledged approximately £90million to enhance and develop over-site developments (OSD). Each station in Central London which has been regenerated will have a new urban environment that is set to attract property developers from all over London. The scheme has quickly become a hub for property moguls, looking to cite the development of Crossrail as a reason to develop. Since construction in 2013, contracts to develop near Crossrail stations has increased from 15% in 2009. Subsequently, Crossrail is the first transport system that has had to deliver an integrated station design that incorporates three elements that serves a purpose to London; the station, above station property and improving public spaces. The re-development and regeneration of London’s urban scene is a direct response of an increased accessibility to a new railway that will bring an estimated 1.5million more people to the streets of London, within a 45 minute commute.
Photo credit: Crossrail.co.uk
Places and spaces in collaboration with Crossrail is luring property developers. There will be 40 improved stations, which accounts for 40 improved spaces outside the station; amounting to 190,000 sq. m of space. When you put it into perspective, the total space acquired to redevelop outside spaces is equivalent to 19 Leicester Squares. The improved spaces will also include 24 station forecourts, 12 improved forecourts, 20 pedestrian crossings, 328 new trees and 1,335 new bike parking spaces. The total cost of urban realm developments is estimated at £130million. The funding is split between Crossrail, TFL and third party contributors such as local councils.
More than 3,000,000 (million) sq. ft. of high quality office space, retail and residential developments are to become the foundations of investment from Crossrail. Noticeably, Crossrail has authorised construction of 12 development opportunities along the route. In an attempt to rejuvenate London’s commercial and residential scene; from 2008 to 2013, 41% of planning applications within 1km of Crossrail stations were made. The key principles for the designs of over-site developments are to be attractive, adaptable and sustainable to its use over time. With a vast amount of commercial, retail and residential property developments currently being developed, the receipts are estimated to generate an income of £500million.
Some of the largest and impressive over-site developments for commercial and residential use include Paddington, Bond Street; where Savoy Stewart is located, Farringdon and Liverpool Street.
Photo credit: Crossrail.co.uk
Farringdon is developed by Cardinal Lysander and Crossrail and they have been granted permission for an 187,000 sq. ft. scheme, designed by architects John Robertson. The development is for mixed use and will span over six floors, with high-quality office space. The development will be opposite the famous Smithfield Market, with retail units due to be installed with five floors of offices over 120,000 sq. ft.
Tottenham Court Road boasts one of the largest over-site developments for Crossrail. Crossrail has joined forces with Hawkins Brown to build above the brand new ticket hall. There is expected to be an 105,000 sq. ft. of residential space as well as 12,000 sq. ft. of retail space, opposite Oxford Street; an increase of revenue and commercial benefit to surrounding businesses.
Photo credit: Crossrail.co.uk