Tech firms overtake finance companies for prime London office space | 30 August 2013
Rapid growth in the technology, media and telecom (TMT) industries has resulted in a surge in demand for London office space, techcitynews.com reports.
Research from city estate agent, Knight Frank has revealed that some 15,000 new TMT businesses have moved into London in the year to March 2013. The firm predicts that by the end of the year, 1.6 million square feet of prime London office space will be acquired by such companies.
TMT firms are said to be moving out of more traditional areas of the capital, like Shoreditch and Farringdon, relocating to the more central locations which are typically favoured by finance and legal institutions.
So fast is this growth, the report found that for ‘every three sq ft taken by finance firms, TMTs are assuming five sq ft’.
This represents an overall increase of 23 per cent on the previous year’s London acquisitions, growthbusiness.co.uk writes. It includes Amazon’s move to Sixty London and Salesforce.com’s occupation of Heron Tower. According to Knight Frank’s James Roberts, Lastminute.com and Skype are soon to be joining the ranks in the City.
“Tech and media firms have outgrown converted warehouse offices and are now seeking modern, high specification office buildings,” Roberts added.
“These are largely found in locations that up to know have been legal or finance dominated, but the techs are arriving and transforming the occupier market.”
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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