London Fringe markets have a diverse occupier profile, from startups in the media and creative sectors in eastern areas like Hackney, to established tech firms in and around the Old Street roundabout. Until recently, commercial property in this area was in very high demand from both newcomers to the city and companies who relocated from other parts of London.
Although demand for offices in the City Fringe is still there, Brexit and pandemic-related uncertainty has put a damper on the area’s growth trajectory. In this area, overall vacancy rates have increased from under 6% to over 9% in the past year, and availability for the City Fringe sub-market is just under 12%.
The following is an area-by-area update on the state of City Fringe offices during 2021:
Clerkenwell
Clerkenwell is part of London’s Tech Belt and has a strong presence of office-based businesses primarily involved in design, architecture, media, and technology.
This sub-market started 2021 with signs of improvement in take up activity, however, take up levels are still more than 50% below the area’s ten-year average. Prime office headline rents average £75 per square foot, rising to over £110 once business rates are added.
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