In the first quarter of 2018 more tech businesses chose to set up offices in the City of London. According to data from Savills the take-up of office space from companies in this sector hit 113,843 square feet. This is already over 50% of the total floorspace taken last year. In addition 42,474 square feet of space on the fringes of the area has been occupied.
A big rise
The positive results for Q1 follow on from a strong 2017. The total floorspace in the area taken up by tech businesses last year was 65% above the average for the decade. It reached the highest level seen since 2000.
Companies are increasingly opting for the Square Mile because space is limited on the fringes of the area. Locations such as Shoreditch and South Bank are struggling with office shortages, leaving businesses to look in other areas. The City of London offers plenty of benefits including impressive existing infrastructure and amenities.
The issue many tech companies have when looking for premises is they require a building that can support the staff and equipment. Sadly this can restrict the number of potential options. With such a big take-up in the City though many commercial property owners are considering redeveloping properties so they appeal to businesses.
Another reason the City is so attractive is that prices are rising in Silicon Roundabout due to the popularity of the area. This encourages businesses to look elsewhere for properties.
Impact on the domestic sector
The impressive performance of the commercial market can have a good impact on the domestic one. For example more businesses moving to the area will likely increase the number of people looking locally for homes. Investors could take advantage of this, whether they are aiming to sell or let out properties.
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