MIPIM 2016: SMEs are putting pressure on City office space and now account for 98.6% of take-up in the Square Mile, a report has found.
SME take-up increased by 15% between 2013 and 2015 and has now reached 16,000 companies, according to research commissioned by the City of London Corporation.
The corporation is now calling for developers to introduce more SME-subsidised units in large-scale buildings, and has urged for “misconceptions” about the City being an expensive place for office space to be corrected.
The report found that SMEs are attracted to the City because of the dense cluster of businesses offering them close proximity to clients and customers, access to amenities, the variety of office stock and competitive prices compared with other parts of London.
Between 800 and 1,000 start-ups have set up in the Square Mile in the last few years, and an average of 1,200 SMEs have moved to the City in each year since 2011.
Leading the drive was the TMT sector, which has seen a 45% increase in jobs since 2010.
Average rents in 2015 were £67.50 per sq ft in 2015, compared with £120 per sq ft in the West End, £80 per sq ft in Victoria and £77.50 per sq ft in King’s Cross.
The report, produced by Ramidus Consulting for the corporation, recommended increasing office spaces of around 3,000 sq ft to 11,000 sq ft, and especially those under 3,000 sq ft.
It also called for increasing subsidised units in large scale plans and improving broadband provision.
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