A 40,000 sq ft sustainable office development in north Shoreditch is set to replace two derelict factory buildings as the area sees booming demand for office space.

Developer Southern Grove secured planning for the canal-side Tiller Building on Orsman Road in Hoxton East and Shoreditch Ward.

Tom Slingsby, Southern Grove CEO, said: “Design is always important to us but there’s a careful balancing act to accomplish when placing significant developments so close to areas of natural beauty.

“What The Tiller Building offers is an oasis where workers can enter the building in central London but emerge at the rear with a feeling that they’ve been transported to another place, well out of the city and surrounded by water and greenery.

“Views like this are highly prized in London and the building really takes advantage of its location. It’s this beauty that is pulling companies away from central Shoreditch north towards the canal-side avenues, as they seek better value. This ‘Shoreditch Sprawl’ will continue now for years.”

Hackney Gazette: A sneak peak of what the new Shoreditch office could look like.A sneak peak of what the new Shoreditch office could look like. (Image: Southern Grove)

The north Shoreditch area near Haggerston is said to be experiencing a boom as businesses flock to it to take advantage of cheaper rents.

At the same time high rents in central Shoreditch, to the south, are pushing companies towards the canal area - a trend known as "Shoreditch sprawl".

The building plans boast 40,000 sq ft of office space with views overlooking Regent's Canal and the scheme has gone through several design changes following feedback from Hackney Council, the Canal River Trust and local residents.

Outside space will be provided on every floor of the building’s six storeys, including an expansive terrace on the the building's roof.

Hackney Gazette: A computer generated image of the future £40 million development.A computer generated image of the future £40 million development. (Image: Southern Grove)

A café is to be situated at the entrance to the building and 10 per cent of its floor area will be allocated to affordable office space. The scheme will also provide 106 cycle spaces on site.

Developer Southern Grove says increasing commercial investment in the north Shoreditch area is marking it out as the natural successor to central Shoreditch, a fashionable London hub that has witnessed a dramatic transformation in the past 15 years.