Office take-up by tech and media firms is set to grow in Canary Wharf, Whitechapel and the Docklands.
Firms are increasing seeking out cheaper rents as well as contending with the limited supply of new office space.
The average rent in Clerkenwell and Farringdon now averages £62.50 sq ft. This compares with £47.50 in Aldgate and Whitechapel, £27.50 in the Docklands and £40 per sq ft in Canary Wharf.
79,740 square feet of space was snapped up by tech firms in Aldgate and Whitechapel in the first three months of the year according to Colliers International.
Colliers’ international research and forecast director Guy Grantham said
“With vacancy rates so low in some of these locations, there is a choice of two or three buildings and that’s it and landlords know it. So there are some very tight and tough deals that are being negotiated at the moment.The fact that vacancy rates are so low – down at one to two per cent – it’s almost forcing people to look further east.”