Office take-up in London’s Tech Belt leapt to a post-pandemic high during the start of the year, according to new figures from Avison Young.
The firm tracked 668,000 sq ft of lettings during the first quarter, the best quarterly total since the third quarter of 2019 and more than two-thirds above the 10-year average.
The largest deal in the area – which spans Whitechapel, Shoreditch, Clerkenwell, King’s Cross and St Pancras – was financial technology firm Wise Payments taking 83,000 sq ft at Worship Square, 65 Clifton Street, EC2, while internet gaming company Super Group took 61,000 sq ft at the St Pancras Campus on Royal College Street, NW1.
“Take-up levels are volatile on a quarterly basis in this district,” Avison Young’s team said. “Nevertheless, the figures point to strong demand at a time when there is growing interest in artificial intelligence and its applications across the corporate world.”
The financial services sector accounted for the largest share of take-up at 22%, followed by the tech and creative sector at 10%. However, Avison Young noted that given the prevalence of fintech businesses in the area, the distinction between finance and tech firms is often blurred.
The Tech Belt vacancy rate edged up to 8.1% in the first quarter, compared with 7.8% at the end of 2023, but was still below its Q1 2023 peak of 9.9%. Average prime headline rents across the area’s sub-markets were static at £73.33 per sq ft. The prime rent in Clerkenwell & Farringdon was unchanged at £92.50 per sq ft, the highest in the Tech Belt.
Image from HB Reavis
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