Over the last five years there has been an upward trend in occupiers paying a premium for London office space with reliable digital connectivity.
A recent report by Radius Data Exchange on The Value of Digital Workplaces reveals that in London as a whole:
Buildings that are WiredScore certified command 4.7% more in rent than in similar buildings that do not have the connectivity accreditation.
Within the London office submarkets the rental premiums attained vary, this impact was found to be more pronounced in maturing areas. WiredScore certified buildings in the City Fringe and Midtown, for example, secured average rental premiums of 9.6% and 9.3% respectively compared to comparable buildings in each area that were not digitally accredited.
In comparison, WiredScore certified buildings in the more established markets of the City Core and West End were found to have obtained average rental premiums of 0.3% and 1.6% respectively. Whilst lower in percentage terms, these rental premiums represent significant increases in absolute terms given the high average rents in these markets.
In their analysis, Radius Data Exchange also found there to be a significantly higher presence of TMT (tech, media and telecoms) occupiers in WiredScore certified buildings versus non-digital buildings, with the footprint of TMT companies encompassing:
- In non-WiredScore certified buildings: 14.1%
- In WiredScore certified buildings : 30.2%.
This makes it clear that TMT tenants place a great deal of importance on having the right digital infrastructure in place for their office space. This is only set to further increase as last year TMT companies accounted for 27% of all take-up in Central London according to Knight Frank.
See below for an exclusive tour of the Wired Certified Nuveen scheme at 70 St Mary Axe in The City of London, also known as the Can of Ham!