Confidence in London's commercial property markets is being bolstered by an influx of high-profile technology companies. Image courtesy of: sxc.hu
A sudden influx of technology-orientated businesses securing Central London office space is likely to help underpin long term confidence in the capital’s commercial property market, according to estate agents
Knight Frank.
The flurry of activity involving Apple, Facebook and Google helped double the uptake of Central London office space taken by the technology sector last year.
Detailed within Knight Frank’s
Silicon London report, it is said that office take-up by technology firms had increased from 640,000 sq. ft. in 2010 to 1.3m sq. ft. in Central London during 2011.
The report also indicates that the demand for office space spreads further than London’s ‘Silicon Roundabout’ as far afield as Covent Garden, Fitzrovia and the Southbank.
While overall take-up and supply of office space in Central London fell simultaneously last year, the report suggests that overall demand could recover as early as this summer.
James Roberts, head of commercial research at Knight Frank, said: “If office demand from tech firms doubles during an economic slowdown, it will be interesting to see what happens when growth improves.”
John Snow, head of central London offices at Knight Frank, believes the decision of some of the world’s most influential technology firms to locate in Central London can only serve to enhance the city’s profile.
“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,” he said.
“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.”