The M1 corridor could be next in line to benefit from the M4 motorway’s technology overspill, according to a report from surveyor Lambert Smith Hampton.
It reveals that explosive growth within the IT and telecom sectors has generated significant demand for office accommodation along the north-south axis of the M1 near London.
“A diminishing supply of office space in the Thames Valley, coupled with higher rents is starting to encourage companies to move to cheaper locations where accessibility is good, particularly along the M1 corridor,” said spokesman Arezou Said.
The report says that office rents in places like Watford, St Albans, Luton and Milton Keynes typically run between £18 and £20 per sq ft (£194 and £215 per sq m).
This compares to rents of around £30 per sq ft (£323 per sq m) in central London. With a similar differential in land prices, Lambert Smith Hampton believes that IT occupiers will increasingly gravitate towards broadband services premises in these centres.
EGi News 14/12/00
