Despite the number of transactions in the past 12 months, supply in the northern and eastern City fringe has actually risen by 10% over the last 12 months; there is now 1.5 million sq ft on the market. This is due to landlords looking to release space onto the market to meet the increasing demand.
The average unit size is 10,800 sq ft, although there are a number of options available for smaller occupiers. We’ve identified more than 100 units to let of less than 5,000 sq ft.
The area is becoming increasingly popular with London’s businesses and residents. Our data shows that there were 74 residential units built in EC1 alone in 2013, and there are a further 658 units under construction.
Also, the area is appealing to firms from other parts of London and across the spectrum of business sectors. Although the culture and vitality of the area around Shoreditch, Old Street and Farringdon is an obvious draw, in the main these firms are taking advantage of the relatively low rents. A brand new office in Shoreditch costs less than half as much to rent per annum as a comparable office in Mayfair.
As a result, rents for the best space have risen by almost 18% over the last year. However, there is still value space out there – the vital part is identifying it early and being successful in negotiating a deal that gives you as much flexibility as possible for the least cost.