London’s burgeoning tech sector is taking an increasingly large slice of prime City office space, with fast-growing companies favouring the Square Mile over the so-called Silicon Roundabout.
Tech firms have committed to almost three times as much office space in the City compared to the City fringe, which includes areas like Shoreditch and South Bank, in the first quarter of the year – according to research from real estate adviser Savills.
The analysis also showed that tech take-up in the City (both core and fringe sub-markets) last year was up 65 per cent on the 10-year average – the highest level of take-up seen in the city by tech companies since 2000.
In the first three months of 2018, take-up by tech occupiers in the City hit 114,843 square feet (sq ft), already over half the total tech take-up seen in the area in 2017. By comparison, tech take-up in the City fringe in the first quarter of 2018 was at 42,473 sq ft.
The news comes as co-working space giant WeWork, which counts many tech startups as its clients, announced yesterday that it has snapped up the City of London’s Devonshire Square for around £580m.
Key examples of other tech companies setting up shop in the City include cloud-based email management company Mimecast signing a lease on to 78,629 sq ft space at 1 Finsbury Avenueand data protection firm CallSign agreeing to a new lease on a 13,443 sq ft property at 150 Cheapside.