Shoreditch office rents to rise as Tech City grows
The boom in digital companies spending on digs in Tech City shows no sign of abating, with Shoreditch set to lead the way in the office rental market.
The east London area will achieve the strongest offices rental growth in central London between now and December 2020, a new study from property agent Knight Frank has forecast.
Landlords can expect income to rise 11.4% to £78 per square foot over the next three years.
The expected growth comes despite jitters in the commercial property market that Britain’s vote to leave the European Union would cause businesses to freeze or halt office moves, and therefore force building owners to keep rents static.
Knight Frank thinks a number of companies will be looking to expand thanks to a wave of new technologies, from driverless vehicles to artificial intelligence.
James Roberts, the firm’s chief economist, said: “Tech firms essentially live in a borderless world, so the uncertainty of Brexit has less impact on them."
He added: “This is why we see office districts popular with this key sector enjoying strong momentum over the next three years.”
Recent Shoreditch lettings include Box.com, taking 25,000 sq ft at Derwent London’s White Collar Factory.
South bank, Fitzrovia and Victoria are also expected to see rises in rental growth.
