Tech Belt
Keys stats this quarter
TAKE-UP FOR Q3 (SQ FT)
56% below the 10-year quarterly average
VACANCY RATE
PRIME RENT (PER SQ FT)
King's Cross
Following the trend seen across Central London, Q3 saw muted levels of take-up in the Tech Belt reaching 169,000 sq ft, 56% below the 10-year average and 50% below Q2 levels. The largest deal was at HYLO, Bunhill Row, EC1, where Sage Publications took 25,000 sq ft. As a result of this deal, the TMT sector accounted for the largest share of demand.
Driven by an increase in second-hand space, vacancy increased to 9.8% in Q3, up from 9.0% in Q2. Conversely, Grade A vacancy continues to fall, standing at 2.3%, down from 3.2% 12 months ago. Contributing to constrained levels of supply is development activity levels being below average; the Tech Belt saw just 305,000 sq ft of deliveries this year, down on the 10-year average of 1.1m sq ft seen per annum.
Prime rents in the Tech Belt stand at £95.00 per sq ft, reflecting annual growth of 5.6%. The micro-markets of Aldgate/Whitechapel and Shoreditch have also seen strong rental growth over the last 12 months with prime rents now standing at £55.00 per sq ft and £82.50 per sq ft, respectively.
KEY DEALS
Source: Avison Young
TOP TENANT SECTORS Q3
Source: Avison Young
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