The glass is half empty: Just 10 per cent of offices have been rented out at the Shard a year after it was built as developers struggle to fill the space

  • Europe's tallest skyscraper struggling to attract businesses
  • Twenty-five floors of offices remain empty 12 months after launch
  • But developer confident 'patient' approach will pay off and expects space to be filled by 2014

By Daily Mail Reporter

PUBLISHED: 06:43 EST, 6 July 2013 | UPDATED: 06:52 EST, 6 July 2013


Not a single office in London's Shard has been filled, a year after the building was inaugurated, it has been revealed.

While tourists and diners have flocked to the 360 degree viewing platform and sky-high restaurants at what is Europe's tallest building, big businesses have been somewhat less enthused.

It is thought just 10 per cent of the skyscraper's 25-floors of office space have been let, with any firms not expected to move in until next year.

The Shard has been a hit with tourists and diners, who have flocked to its viewing platforms and restaurants, but its 25 floors of office space remain empty a year after the building's inauguration

The Shard has been a hit with tourists and diners, who have flocked to its viewing platforms and restaurants, but its 25 floors of office space remain empty a year after the building's inauguration

The View From The Shard is opened to the public.
Oblix restaurant in Level 32, The Shard, 31 St Thomas Street, SE1.

Unrivaled experience: Tourists have flocked to the Shard to experience the viewing platform and the building's three restaurants but it has struggled to attract businesses so far

Just 12 months ago London mayor Boris Johnson confidently predicted the Shard would 'act as a huge commercial magnet, creating vital new jobs and bringing in scores of businesses'. 

There have been rumours a number of high-profile firms are on the brink of moving in, including financial advisers Duff & Phelps, Arabic TV channel Al-Jazeera and another Middle-Eastern company, South Hook Gas.

 

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But even if deals have been agreed, that would only mean about three of the floors being taken.

Information on rents and prospective tenants is a closely-guarded secret, but it is thought the amount of prospective tenants pale in comparison to other new buildings in London, such as the Cheesegrater and Walkie-Talkie towers, which are 50 per cent let before construction has even finished.

But Irvine Sellar, the developer behind the 72-storey structure, remains confident businesses will soon be moving in.

Mayor of London Boris Johnson pretends to cut a ribbon to open the viewing platform at the opening of The Shard, London SE1.
Television Programme: The Tallest Tower: Building The Shard with Irvine Sellar the property entrepreneur. Irvine Sellar the property entrepreneur behind the Shard 1.jp

Confident: Boris Johnson said the Shard would be a 'commercial magnet' when he openedlast year, left. Irvine Sellar, the building's developer, says that remains the case and expects firms to move in next year

Imposing: The Shard is the dominant feature in London's skyline and is Europe's tallest skyscraper, with 72 floors

Imposing: The Shard is the dominant feature in London's skyline and is Europe's tallest skyscraper, with 72 floors

He told The Times: 'We have signed up a few tenants and are in discussion with a number of others and we will make a decision when we are ready. We are taking our time, as we don't just want to fill the Shard up with accountants or lawyers.'

Mr Sellar added the business plan for the building allowed for the first leases to be signed as late as 2014, and was in 'no hurry' to get firms on board before then.

The cost of running a skyscraper is astronomical, with cleaning windows costing about £150,000 a year alone

Powering the building involves 'pre-booking' a block amount of electricity from the grid that has to be paid for even if it is not to be used.

Office tenants also pay a service charge for items like cleaning and security, which one consultant said could come to as much as £9 million a year when the Shard is fully let.

More than half a million tickets have been sold for the building's viewing platform

More than half a million tickets have been sold for the building's viewing platform

The consultant, who didn't want to be named, told the paper Mr Sellar is taking a 'determined stance' on who he would allow in the building and said it was 'bold' he hadn't held a launch specifically for the property market.

But he backed him to succeed because demand for office space in London continues to grow.

'The prospects for the Shard look better than when it completed last year,' he said.

Mr Sellar said more than half a million tickets had been sold for the viewing platforms and added: 'The Shard has been a long time coming. But this is a building that is going to last a few centuries.'

The businessman is also developing the building next door, The Place, which, together with its imposing neighbour, make up what is known as the London Bridge Quarter.

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What business?

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disgusting that they have homeless roma gipsies sleeping on park benches - -and the council could put beds in there so they could sleep in the dry - -ready to come straight out in the morning to head off to work, - - well it would keep a lot out of coming up here anyway. - and we all know Londoners are so rich charitable and generous.

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The area from Tower Bridge to the London eye going past the Shard on the south bank is just fantastic .

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Just a suggestion. Perhaps lowering the rent would entice firms to move in?

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Well if they didn't want to make a return on their investment inside 5 years maybe the place would have more residents.

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Sign of the economic times; another white elephant; HS2 will be also be;a white elephant funded by the tax payer to service the private sector; if its going to be so popular why ? aren't the privatised rail companies funded it;it will be taxpayers paying twice once to build and once to use it; bring on the English spring its better to die fighting than starving.

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They said all this about the Docklands and the Gherkin. It will find it's place.

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Should never have been built. Please get rid of it.

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Sod them.. They don't need the income. Perhaps they will learn they can only strangleus so far.

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Six months ago I visited the observation floor at the Shard and on the way out I wanted to grab a souvenir. Talk about absolutely extortionate pricing. Hardly anyone was buying any of it. Surely they could make more profit by pricing it at a more resonable price resulting in a higher sales turnover rate. But what would I know?

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