Rising rents in particular in London, San Francisco and New York, are pushing startups out of tech hubs.
Quoting data from Knight Frank, The Wall Street Journal says that rents in the Shoreditch area in East London, where the Tech City / Silicon Roundabout cluster has developed in recent years, have risen rose 54% to £50 ($82) per square foot between the end of 2010 to the first quarter of 2014 whereas in the adjacent City financial district, rents have increased 9% to £60 per square foot in the same period.
In New York, Midtown South office rents are up 51% to $57.31 per square foot. Rents in Midtown, home to the Empire State Building, rose 34% to $74.03 per square foot.
Rents in San Francisco’s South of Market district are up 82% to $62.17 per square foot, surpassing the financial district’s $61 per square foot, an increase of 63%.
Last week we reported that headline Dublin prime office rents in D2, D$ and Docklands are heading to €50 ($65) per square foot.
However, we were advised that special deals can still be got in respect of Dublin lettings (over 30,000 sq ft and up) in the early €30s per square foot. "In fact all of the bigger lettings in Dublin in the last 12 months (Facebook, William Fry, Dropbox etc.) were for effective rents of under €30 per sq ft."
Big multinational firms can easily handle rising rents in Dublin but it's a different scenario for cash-strapped startups - - Dublin's Silicon Docks
Knight Frank: The ascendance of tech hubs