Knight Frank has produced a Silicon London report, which reveals that Tech firms rented 1.3 million sq ft of office space in 2011, a rise of over 100% up on the 640,000 sq ft total of 2010.
Facebook, Groupon, Nokia, Apple and Expedia are among the big names to have recently set up operations in the London.
KF’s Silicon London report indicated that the most popular office rental districts for dot.coms are in Covent Garden, Clerkenwell and Fitzrovia, in addition to the well established Old Street and Shoreditch tech hub. Despite wider declines across Central London, the doubling of demand from the technology sector is encouraging signal for the future, according to Knight Frank.
KF’s head of central London offices, John Snow is also optimistic about the future of the office industry in the capital “That companies, like Apple, Google, and Facebook want to be in London over other European cities is a great vote of confidence in the capital. This is a time of huge change for London, with the foreign influence growing in both the leasing and investment market. London is a business friendly environment, which is the lure for overseas companies and investors. I expect this globalisation of London to continue.”
James Roberts of Knight Frank’s commercial research said: “The central London office market felt the impact of the global economic slowdown last year. However, if the recent rally for equity markets continues, I believe we could see office demand pick-up again by the summer. Plus there is this additional upside from the technology sector to give us confidence. If office demand from tech firms doubles during an economic slowdown, it will be interesting to see what happens when growth improves.”