13/02/2025
Old Street has long been synonymous with London’s tech sector, but the market continues to evolve. There is sustained demand for the best buildings, particularly in prime locations that offer high-quality space and strong connectivity. We sat down with Shaun Simons, Founder of Compton, to explore the latest trends shaping the Old Street office market. From the evolving tenant mix to the impact of transport upgrades and future development, he shares insights into what’s next for one of London’s most dynamic districts.
Old Street has long been considered the tech hub of London. How has the area evolved in the last 12-18 months?
Old Street remains London’s leading tech hub, but it has always been more than just technology. For years, it has been a prime destination for both creative and tech companies, as well as businesses seeking a central London location with convenient access to the West End, the City, and King’s Cross. Like many areas, Old Street was hit hard by Covid, but the past 18 months have demonstrated its resilience and continued desirability.
What is happening in the tech sector – are you seeing growth and an increase in space requirements?
The outlook depends on individual circumstances, as there’s no one-size-fits-all answer. Tech funding has faced challenges, particularly compared to the pre-2020 landscape and before the collapse of Silicon Valley Bank. Before these events, businesses, often heavily loss-making, could easily raise significant debt and would freely spend on real estate solutions. That’s no longer the case for most, which may seem like a hurdle for growth. However, I see it as a positive shift, bringing more financial diligence that ultimately benefits both businesses and the landlords they commit to.
Have we seen a shift in the types of tenants moving into the City Fringe? Who’s taking space, and what are they looking for?
Tech remains a major driver of demand, but Old Street has always attracted a broader range of occupiers. The district is seeing a more mature tenant base, a trend likely to strengthen as supply tightens in core markets.
Given the difficulties during Covid, what has happened to take up and availability of prime stock on the last 12 months?
Supply and demand remain imbalanced post-Covid, with more available space than occupier demand. This means the best properties continue to perform strongly, while secondary stock struggles unless priced appropriately.
What role does quality play in securing tenants? Is the ‘best-in-class’ trend still driving leasing activity?
Quality matters, but value is key. The highest-quality buildings in prime locations with top-tier amenities continue to attract demand. However, there is depth in the market across all asset classes, provided pricing reflects the relative value. Not every business can afford premium space, but well-positioned properties at the right price point are still securing tenants.
With new developments in the pipeline, how do you see the City Fringe market evolving in 2024 and beyond?
I’m optimistic about Old Street’s future. Several world-class, forward-thinking developments are underway, and I’m confident they will drive further demand from occupiers in neighbouring districts. In addition to this, the recent improvements to Old Street Station and the opening of Crossrail at Moorgate has made the transport offerings significantly enhanced.
What’s one bold prediction you have for Old Street’s office market over the next five years?
I predict another major tech powerhouse is on the horizon, set to join Amazon, Snapchat, and TikTok in the area.
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