The success of Shoreditch and the “East London Tech City” could be in jeopardy, as the cheap office space that first enabled technological innovators to flock to the area is strangled by its own success.
One significant factor thought to be increasing the cost of office space in this area of East London is the arrival of larger firms, such as Google, who seem keen to tap into the its creative output.
While the chance to network and engage with these tech giants brings with it opportunities, the arrival of big names is bringing big rental prices to the area also – forcing out the start-up firms that helped to create its original success.
In a report which talks of extending the area’s success, by creating a “tech corridor” out toward the Olympic Park, the focus ironically singles out attracting “larger firms” – while seemingly failing to acknowledge the ‘small firm’ foundation.
But interest in taking up space along the corridor seems cool, as the interviewers who conducted the study themselves explained:
“Our interviews indicated limited willingness to go further east, especially into Stratford. It may take many years before these neighbourhoods become as attractive to digital economy firms as the current cluster core, if ever. The history of master-planning clusters suggests the chances of success are limited.”