According to a new report highlighted by City A.M., work on 10 new developments totalling 1.6m sq ft worth of new space commenced in the last 6 months, from April to October 2014. It is the largest number of new starts since 2011 and accounts for three quarters of all new space under construction in London.
City A.M posits the view that this new impetus is largely due to the thriving “Tech sector” based primarily around the City’s Old Street roundabout (rebranded as “Silicon Roundabout”) in EC1. 5 of the 10 new developments are located here including Derwent London’s mammoth White Collar Factory office building and Helical Bar’s The Bower. There are also new undertakings at 99 Clifton Street, City Road and One London Wall Place, a 309,000 sq ft new development owned by Brookfield (pre-let to Schroder).
The tech sector continues to grow apace in London, aided by government initiatives. TMT companies now represent 16 percent of the total office space currently occupied in the capital. This is proving to be the prompt for this renewed spate of office construction in areas which continue to prove attractive to TMT businesses.
Newton Perkins’ Paul Vernon-Smith also comments; “We are seeing a spread of interest from TMT occupiers to the east side of the City around Aldgate. It is also notable, indeed remarkable, that Resolution Property’s Alpha Beta office scheme facing onto Finsbury Square is being marketed with a 'south Shoreditch' address".