Technology, media and telecoms (TMT) companies have increased their presence in the City of London after taking up nearly a quarter of all office space lettings in the Square Mile last year, according to figures out today.
Property agents JLL and DTZ found that tech firms grabbed one million square feet of office space in the City last year and accounted for the largest proportion of take-up (23 percent), followed by financial services firms (21 percent).
Despite only being a small increase on 2012 (22 percent) the number of TMT firms taking office space in the City has risen dramatically since 2004-09 when the sector accounted for eight to nine percent of office take-up.
DTZ’s head of research, Richard Yorke, is quoted in CityAM saying: “With the financial sector likely to experience only modest growth in employment, the TMT sector is becoming more important as a source of demand.”
Indeed, TMT firms are snapping up office space across the whole of London, according property consultancy Colliers International.
Last October, the consultancy said TMT firms had acquired 2.9 million square feet of office between January 2013 and October 2013, driven largely by deals such as Google’s decision to build a new UK headquarters on an 860,000 sq ft campus at King’s Cross and Facebook’s decision to move into an office down the road, where it is reported to be taking 85,000 square feet.
Guy Grantham, a director at Colliers International, told Techworld last year that the only tech firms breaking into the Square Mile are those in fintech (financial technology) or those exclusively servicing the banking and financial sector.