A new report has predicted that the City of London will experience an increase in the number of technology, media and telecoms firms acquiring office space by the end of the year, property-magazine.eu writes.
Research carried out by real estate firm, Knight Frank found that there has been a 23 per cent rise in the amount of TMT firms that have moved into central London offices, a trend which it thinks will continue.
Online retailer, Amazon made a move to Sixty London in Holborn this year, while communications firm, Publicis assumed 96,000 sq ft in Chancery Lane. Internet payments company, WorldPay made the biggest acquisition – 92,000 sq ft at The Walbrook, situated close to The Bank of England.
Knight Frank expects some 1.6 million sq ft of office space to be leased by TMT businesses by the end of the year, with Skype and Lastminute.com soon heading into the City, too.
London, as the centre of the UK’s business world is naturally a desirable location for any company. It’s fair to say that there is a certain prestige associated with possessing a London address, but it also provides firms with a raft of function venues for conferences and client events plus unrivalled transport links with the entire world.
The findings have taken some analysts by surprise, as the TMT firms are assuming space in locations that have typically been favoured by finance and law.
Knight Frank’s James Roberts commented to growthbusiness.co.uk: “Tech and media firms have outgrown converted warehouses and are now seeking modern, high specification office buildings…largely found in locations that up to now have been legal or finance dominated.”