London most expensive city in the World for tech business start ups

The past 18 months have seen rental records being shattered across the capital. St James’s achieved the global record, with prices reaching £185 per sq ft, whilst rents in SE1, midtown, The City and Canary Wharf have all increased dramatically. London is the centre for commercial real estate; rents have been on the rise for years, finally reaching a staggering 70% increase in prices seen in 2011, with a lack of supply and constant demand for space driving costs up. As such, the cost for new businesses ‘setting up shop’ in the capital has become incredibly expensive. A recent study, by property giants Knight Frank, discovered that London is in fact the most expensive city in the world for tech start-ups.

Shoreditch has seen the fastest rental growth over the last five years. Originally attracting tech companies at a time when rents were low, space is now being marketed at £55 per sq ft and above, bringing costs close to those associated with Fitzrovia and even parts of Soho.

Eugene O’Sullivan, Director at tenant acquisition specialist Morgan Pryce, says:“Alternatives to conventional leases are the best way to assist tech start-ups that are looking to take space. Businesses searching for their first office in the capital are facing difficult battles, with rental levels, rent deposits and fit-out costs all hitting cash flows hard. The options of sub-leases and assignments, shared collaborative space and serviced offices offer great alternatives that can be beneficial over the first few years of a new company.”

This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants