London is the dominant driver in the UK economy and a major global city. It is one of the leading global centres for creative industries such as publishing, film, TV, media, telecommunications, computer programming and information services. Over the past five years the TMT sector has seen significant employment growth with 24,500 new jobs created in central London reflecting 87% of overall employment growth by creative industries.
This has had a significant impact on central London office space, with extremely high levels of take-up reinforcing traditional clusters and spilling over into new markets. This increase in demand permeating from creative industries and ‘TMT’ occupiers has been focused on a rapidly evolving ‘Tech Belt’ stretching from King’s Cross in the west across Farringdon to Angel and Old Street. With tenant focus on connectivity and amenity, Angel Square is well placed to benefit from this new type of occupier.
The anticipated limited office supply pipeline across central London over the next few years has led to a shortage of suitable ready for occupation accommodation.
Development activity within the Tech Belt has started to increase as demand from the TMT sector has continued to expand and push outside of the traditional boundaries of the core markets in a search for characterful or design-led accommodation, as demonstrated by Derwent London’s Angel Building, directly opposite Angel Square.
As demand continues to rise, this will lead to increased pressure on headline rents and incentive packages available to occupiers.
Angel Square’s immediate locality at a triangulation point of major thoroughfares between King’s Cross, Old Street and Farringdon has made it a focal point of interest to occupiers from the creative and TMT industries. Angel Square benefits from its position within an established commercial area with impressive transport connectivity and high levels of local amenity.
King's Cross is the largest mixed use development in single ownership to be developed in central London for over 150 years. The 67 acre site adjacent to King’s Cross station will form a vibrant new city quarter of offices, homes, community facilities, schools, a world-renowned university as well as a host of shops, restaurants, bars and cultural venues.
Internet giant Google UK is building its UK headquarters at King’s Cross in a landmark building. Other significant occupiers in the locality are the Guardian Newspaper, PRS for Music, BNP Paribas and the London Borough of Camden.
The Farringdon area of Clerkenwell is one of London’s most diverse and thriving districts, attracting an ever growing list of office occupiers, high class restaurants and boutique hotels. It has evolved into a popular office location favoured by many companies in the creative and TMT industries, who are attracted by the excellent transport links, the character of the buildings, culture and high level of amenities.
Since the global economic downturn of 2008, Farringdon has experienced significant growth and increased popularity amongst occupiers and investors alike. One of the principal drivers to this has been the anticipated arrival of Crossrail in 2018. Farringdon Station is the only intersection point between Crossrail and Thameslink which will create one of the busiest stations in London.
Over the past 18 months, there has be widespread support and funding from both local and central government for increased development at Old Street roundabout, commonly referred to as 'Silicon Roundabout'. There is a strong emphasis on creating a Technological Hub emanating from Old Street roundabout which will support the expanding requirements of small start-ups to global businesses.
Recent data published by accountants UHY Hacker Young revealed that 15,700 new businesses were set up in this area last year outstripping any other area in the UK.