UK gaming companies signed for a record amount of office space last year, reveals new data from Knight Frank.
Knight Frank’s (RE) Play UK Gaming Report shows that gaming companies leased circa 437,000 sq ft of office space last year – a 45% increase on take-up in 2021. In H1 2023, UK gaming companies leased an additional circa 98,000 sq ft of space.
The UK gaming industry is growing rapidly at the moment and investment in the sector is booming with last year seeing a record high of £929m of venture capital funding invested in the sector. This trend continued into 2023, which recorded the second highest H1 on record by deal value over the last few years.
Jamie Phillips, partner at Knight Frank, said: “The gaming sector is one of the UK’s major success stories of the past few years, earmarked as a priority growth sector by the government. The sector’s success is a UK wide story, with 63% of gaming companies based outside of London. Thriving gaming hubs can be found in larger cities as well as locations including Leamington Spa, Guildford and Dundee.
“Fast-growing gaming companies are increasingly seeking space with unique digital infrastructure, including resilient connectivity, uninterrupted power supply and an appropriate HVAC system to maintain optimal server operating temperatures. Proximity to data centre services – either in-built or via third-party providers – are principal considerations when choosing a site or location, as is space which can support flexible working patterns and sustainability objectives. “
Jennifer Townsend, partner at Knight Frank, added: “While the sector isn’t immune to headwinds, the rising popularity of gaming, paired with the emergence of new sub-sectors like esports and immersive technology, has led to a surge of new gaming companies entering the UK market. Innovation-led sectors such as gaming are growing at a more rapid rate than other parts of the UK economy.
“From a real estate perspective, it is of note that gaming companies have shown a particular propensity for repurposed buildings, such as Sumo Digital’s move into a former House of Fraser department store in Leamington Spa. This trend could unlock new opportunities for the sustainable reuse of heritage assets in regional towns and cities. However, the feasibility of adapting such sites will depend on whether they can be retrofitted to support the specific real estate requirements of the sector.”
