UK commercial property market boosted by ‘tech company boom’

Wiseman AdminCommercial, PropertyLeave a Comment

In recent months, activity in the UK’s commercial property market has been boosted by the arrival of a number of leading tech companies to London and other key UK cities, commentators have said.

According to new data published by real estate group CBRE, office take-up within Central London has soared to 9.8 million square-ft in the year to September – the highest level on record in more than two years.

The report says that take-up levels have been ‘boosted significantly’ since social media giant Facebook took on more than 600,000 square-ft for its new UK headquarters earlier in the year.

Since Facebook’s arrival, there has been an influx of large creative and tech companies moving to the UK, despite uncertainties surrounding Britain’s future relationship with the European Union (EU), the report states.

It reveals that in the three months to the end of September (Q3), as many as five major deals were agreed in London which exceeded 100,000 square-ft.

Elsewhere, places such as Manchester and Cheshire have opened their doors to exciting online retailers, artificial intelligence (AI) firms and more, including the likes of ao.com and Boohoo.

Meanwhile, property group JLL has noted that Birmingham is enjoying a ‘boom time’ for tech investment, with the digital tech industry recently named as the ‘fastest-growing sector’ in the city and its surrounding regions.

Emma Crawford, a Managing Director at CBRE, said: “Quarter three saw a resilient performance across the London office market, with requirements for space from the banking and finance sector proving exceptionally strong.

“In what is a continuing trend, occupiers showed a vigorous preference for new space across the quarter, with new or pre-let space representing nearly half of all take-up, taking it significantly above the 10-year average.”

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