UK-based gaming companies leased a record volume of office space in 2022 as continued consumer demand and increased governmental support bolster take-up.
Companies in the sector leased around 437,000 sq ft of office space last year, a 45% increase on 2021, according to data from Knight Frank’s latest (RE)Play UK Gaming report.
In the first half of 2023, the strong demand continued with around 98,000 sq ft leased by the sector.
The occupier survey found gaming companies are not opposed to taking space in unconventional or repurposed buildings, pointing to Sumo Digital, which prelet 43,900 sq ft in a converted House of Fraser department store in Leamington Spa, and X R Games, which moved into converted railway buildings in Leeds.
The survey revealed the UK is home to Europe’s largest gaming market, with venture capital funding reaching a record high of £929m in 2022.
The first half of 2023 was the second highest H1 on record by deal value over the past five years, as development in the AI field has fuelled new start-ups.
Knight Frank partner Jamie Phillips said: “The gaming sector is one of the UK’s major success stories of the past few years, earmarked as a priority growth sector by the government.
“The sector’s success is a UK-wide story, with 63% of gaming companies based outside of London. Thriving gaming hubs can be found in larger cities as well as locations including Leamington Spa, Guildford and Dundee.”
Jennifer Townsend, partner at Knight Frank, added: “While the sector isn’t immune to headwinds, the rising popularity of gaming, paired with the emergence of new sub-sectors such as esports and immersive technology, has led to a surge of new gaming companies entering the UK market. Innovation-led sectors such as gaming are growing at a more rapid rate than other parts of the UK economy.”
To send feedback, e-mail chante.bohitige@eg.co.uk or tweet @bohitige or @EGPropertyNews
