Since the launch of the St Bride’s World Cities Index in 2011, London has consistently been ranked Number One. However, in the light of Brexit and the recent pandemic, the question now, is … will London be able to sustain its top spot? Our latest publication, London - Number One World City, which has been prepared in conjunction with Ramidus Consulting, suggests it will.
Here are six questions to test how well you know London.
1. Whilst London is ranked No.1 overall in the St Bride’s World Cities Index, it is positioned rather lower at No.11= for its Constitution/ Rule of Law. We know that London is not perfect. Knife and gun crime, for instance, took eighty-five lives in 2020. However, we do pride ourselves on the fairness of our justice system, our freedom of speech, and the independence of our broadcasting and journalism. And, we have an even-handed police force. We also love our fictional crime-busting detectives and spies such as Sherlock Holmes and George Smiley. With this in mind, in which 2012 blockbuster film did the MI6 building in Vauxhall get blown up, and who was the villain?
2. London is ranked No.3 for Economic Stability within the World Cities Model. Although still highly important, London is no longer dependent on its historic banking, financial and insurance sectors. The shape of employment in London has changed significantly over the past decade and no doubt WFH and hybrid working will usher in further changes. According to BEIS, how many SMEs are there now in London?
3. London is ranked No.2 for Desirability/Living in the World Cities Model. Berlin is No.1 and Sydney is No. 3. London’s high ranking is easily understood given the city’s phenomenal sports, theatre, museums, music, arts and leisure facilities. It is generally accepted that London’s oldest restaurant is Rules in Covent Garden which was established in 1789. But which is London’s oldest pub, and when was it established?
4. The construction of Broadgate at Liverpool Street in the mid/late 80s, proved to be the forerunner for other mega-schemes around London’s mainline railway stations. London is now a truly polycentric city. More recently, developments have been growing upwards too. Until 2010, the NatWest Tower (re-named Tower 42) was London’s tallest building at 600 feet. Then followed the Heron Tower (755 feet) and, in 2012, The Shard, at London Bridge took pole position at 1,016 feet. How many other buildings in Greater London now surpass the height of Tower 42?
5. The pandemic-imposed policy of WFH has had a nasty impact on office occupancy, and according to BNP Paribas, office vacancy in London currently stands at 8.3%. However, over the past 20 years, what (and when) have been the peaks and troughs of London’s office vacancy?
6. The MSCI All Property UK Total Return over 10 years to 31 March 2021 was 6.9%. That compares with 4.4% for 10 year Government Securities and 4.9% for Equities. What have been the MSCI total returns for London retail, London offices and London industrials over the same time-period?
Enjoy your Sunday. And, if you live, work or invest in London, rest assured that St Bride’s Managers expects it to retain its Number 1 ranking in our World Cities Index.
The Weekly
Answers:
Skyfall, which was the 23rd Bond film. On this occasion, Raoul Silva, a disaffected former ‘Double O’ agent was the baddie.
There are 1.28 million SMEs in London, up from 1.04 million in 2010.
London’s oldest pub is the Seven Sisters in Carey Street, at the back of the Royal Courts of Justice. It was established in 1602.
The answer is 14. Tower 42 is now the fifth tallest building in the City and the fifteenth tallest in Greater London.
Central London office vacancy peaked at 11.20% in 2004 and again, also at 11.20% in 2009. The lowest vacancy rate over the past twenty years was recorded at 4.30% in 2015.
All three asset classes have outperformed the MSCI All Property UK Index (6.9%) over the past 10 years. Industrials have performed best at 14.6%, followed by offices at 9.4%. Even retail has outperformed at 7.0%.