Latest figures from Knight Frank Research point to increased demand for office space in the City of London from the technology, media and telecoms (TMT) sector. This reflects the growth on the East London tech city and its increasing significance in the London economy.
TMT firms acquired 931,000 sq ft of offices in the first nine months of 2012, up 39% on the 670,000 sq ft acquired in the equivalent period of 2011. In comparison, the financial sector has accounted for 620,000 sq ft so far this year, down from 680,000 sq ft in the same time period of 2011.
Commenting on the figures, James Roberts, head of commercial research at Knight Frank said: “this is part of a global phenomenon, as we are seeing rising TMT demand being reported in Chicago, New York, Dublin, and Berlin, as well as London. The City of London is emerging as a focus point as it has the transport, telecommunications, and power infrastructure to support this growing sector. It also plugs into the wealth of talented young tech and media workers who live in areas like Islington, Hackney, and Tower Hamlets which border the Tech City; so the workforce is close at hand.”
Bradley Baker, head of central London tenant representation at Knight Frank, commented: “This rising occupier sector is seeking office space that is located near transport hubs as well as served by trendy cafes and bars for staff to frequent. Value for money is pushing them towards the City where rents are lower compared to the West End, and activity is no longer restricted to the Northern City districts of Shoreditch and Farrindon, with older City core offices now of interest.”
