Tech Start-ups Face Office Shortage
Technology start-ups seeking offices to rent in London could be facing a shortage, with the high profile ΓÇ£Tech CityΓÇ¥ expressing concerns that limited office stock could stifle the governments ambition of creating a rival to Silicon Valley in LondonΓÇÖs East End.
Tech City has received significant backing and exposure in recent years, allowing what began as a small cluster of firms to grow significantly. The success of Tech City led to government backing and Prime Minister David Cameron stating that:
ΓÇ£Our ambition is to bring together the creativity and energy of Shoreditch and the incredible possibilities of the Olympic Park to help make East London one of the worldΓÇÖs great technology centres.ΓÇ¥
But as awareness and support have grown, so have the number of big businesses moving into the area. According to Tech City, the impact of this has made it harder for Technology start-ups to secure space within the area ΓÇô potentially stifling innovation.
Looking at the serviced office market in this area, a traditional starting point for new businesses such as those supported by Tech City, workstation prices have increased by 12.5% since the beginning of 2011.
So with the average cost of a single serviced office workstation having risen from ┬ú261 per month in 2010 to ┬ú294 per month in 2011 ΓÇô could the arrival of larger, wealthier firms be pushing up prices in the area and discouraging start-ups from becoming part of this creative, innovative community?
One larger company that will be using its presence in the area to back innovation however will be Google, who are set to take on a seven-story building on Bonhill Street. A short walk from what has been dubbed the ΓÇ£Silicon RoundaboutΓÇ¥, the building is set to provide space aimed at nurturing technology start-ups.
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