Technology Firms Upgrade Office Space Demand
The flurry of tech-orientated firms snapping up office space in Central London should underpin a long-term confidence in the market according to Knight Frank ΓÇô with the arrival of Apple, Facebook and Google helping to double the up-take of office space secured by the technology sector during 2011.
Outlined in the commercial agents Silicon London report, it is reported that office take-up by technology firms increased from 640,000 sq. ft. in 2010 to 1.3m sq. ft. in Central London during 2011.
The report also shows that demand was widespread ΓÇô extending beyond the so-called ΓÇ£Silicon RoundaboutΓÇ¥ of Shoreditch to reach Covent Garden, Farringdon, Fitzrovia and even the Southbank.
While the overall up-take of office space decreased across Central London during 2011, particularly in the financial sector, it is also reported that supply continued to decrease ΓÇô resulting in stable rent levels being recorded in the City.
The report does however state that a wider demand for office space across the capital could return as early as the summer of 2012 ΓÇô with James Roberts, head of commercial research at Knight Frank stating that: ΓÇ£If office demand from tech firms doubles during an economic slowdown, it will be interesting to see what happens when growth improves.ΓÇ¥
John Snow, head of central London offices for the commercial agent explained: ΓÇ£That companies, like Apple, Google, and Facebook want to be in London over other European cities is a great vote of confidence in the capital.
ΓÇ£This is a time of huge change for London, with the foreign influence growing in both the leasing and investment market. London is a business friendly environment, which is the lure for overseas companies and investors. I expect this globalisation of London to continue.ΓÇ¥