Tech firm office take-up celebrated

Office design news from Morgan Lovell

Published on 06-02-2012

The host of tech giants descending on Central London office space gives the market reason to be optimistic, Knight Frank has said.

Take-up of office space secured by the technology sector doubled last year, from 640,000 sq ft in 2010 to 1.3m sq ft in Central London during 2011.

Knight Frank maintains that if big-name firms like Apple and Google are setting up camp in the capital amid the financial crisis, things will only get better as the economy improves.

The commercial agents Silicon London report notes that demand for Central London office space stretched far and wide, to include Covent Garden, Farringdon, Fitzrovia and even the Southbank.

This, Knight Frank maintains, should help underpin a long-term confidence in the market. James Roberts, head of commercial research at Knight Frank stating that: "If office demand from tech firms doubles during an economic slowdown, it will be interesting to see what happens when growth improves."

The report does, however, note that the overall up-take of office space decreased across Central London during 2011, particularly in the financial sector. Furthermore, supply continued to decrease - resulting in stable rent levels being recorded in the City.

Copyright Press Association 2012