Tech firms ‘to drive London commercial property’
Demand for premium office space in London is set to further increase over the next two years, it has been suggested.
Writing for the Financial Times, property correspondent Ed Hammond claimed that the UK’s fast-growing technology, media and telecommunications (TMT) sector will be responsible for a spike in the market.
He said that with the likes of Google, Skype and Oracle undergoing rapid growth, many such companies will be on the lookout for bigger premises in the capital.
In doing so, they will follow the example of Amazon, which recently signed up for a new eight-storey block in London.
New tenancies from TMT firms could offer “a boon” to tenant-deprived property companies, Mr Hammond claimed.
He said that TMT companies are on course to absorb an additional 1.2 million sq ft by 2014.
This equates to an area twice the size of London’s tallest skyscraper the Shard, Mr Hammond noted, citing research conducted by BNP Paribas.
London a great location for business
Tech-focused companies clearly understand the importance of being at the centre of the business world, and there are few better places to trade than in London.
The city’s location, reputation and increasingly-friendly business climate are helping to sustain – and even enhance – London’s reputation in the international markets.
According to Mr Hammond, TMT companies will consider a range of locations in the capital as they bid to give themselves the best possible chance of maximising growth.
Such firms are increasingly looking beyond Silicon Roundabout – the traditional home of the UK’s technology sector – he noted.
King’s Cross, Southbank and Stratford are among the areas expected to perform well during 2013 and 2014, Mr Hammond suggested.