Tech Belt
Keys stats this quarter
TAKE-UP FOR Q2 (SQ FT)
16% above the 10-year quarterly average
VACANCY RATE
PRIME RENT (PER SQ FT)
Clerkenwell / Farringdon
Take-up in the Tech Belt was 464,000 sq ft in Q2 2024, which marked a retreat from the strong Q1 figure of 668,000 sq ft. However, this was well above the 108,000 sq ft acquired in Q2 2023, and higher than the 10-year average of 401,000 sq ft. Overall, the Tech Belt has seen an impressive start to 2024, with H1 take-up of 1.1 million sq ft compared to 385,000 sq ft for H1 2023.
The largest and second largest deals for the quarter were both signed by Amazon at 8 Curtain Road, EC2 (108,000 sq ft), and 30 Curtain Road, EC2 (72,000 sq ft). Amazon is already a major occupier in the vicinity, with its UK headquarters located at the nearby 1 Principal Place, EC2, which demonstrates Shoreditch’s ongoing appeal to the technology sector.
Unsurprisingly, the TMT & Creative sector accounted for the largest share of take-up at 49%, followed by the Flexible Offices sector at 15%. Given the momentum behind the tech sector at present, in part thanks to the rise of Artificial Intelligence, we remain optimistic on the outlook for office demand in the Tech Belt.
The vacancy rate nudged up to 9.5% in Q2 2024 compared to 9.2% in Q1, but remains below its Q1 2023 peak of 9.9%. The prime rent in the Clerkenwell & Farringdon sub-market increased from £92.50 per sq ft in Q1 to £95.00 per sq ft in Q2, which represents the highest in the Tech Belt. Prime rents in the other districts of this sub-market remained unchanged.
KEY DEALS
Source: Avison Young
TOP TENANT SECTORS Q2
Source: Avison Young
This report has been prepared by Avison Young for general information purposes only. Whilst Avison Young endeavours to ensure that the information in this report is correct it does not warrant completeness or accuracy. You should not rely on it without seeking professional advice. Avison Young assumes no responsibility for errors or omissions in this publication or other documents which are referenced by or linked to this report. To the maximum extent permitted by law and without limitation Avison Young excludes all representations, warranties and conditions relating to this report and the use of this report. All intellectual property rights are reserved and prior written permission is required from Avison Young to reproduce material contained in this report.