TMT sector in the City 11th July 2017

Companies in the tech and media (TMT) sector have accounted for the greatest proportion of City take up so far this year, taking 517,069 of space out of a total of 2.25m sq ft to the end of May 2017 (Savills report) 

The international real estate advisor says that this is the largest amount of take up ever by this sector in the first five months of a year, representing a 20% share of the market, ahead of the professional services sector at 17% and insurance and financial services sector at 14%.

City take-up was 292,764 in May, with 12-month rolling take-up at 5.9m sq ft, up 19% on the long-term average. The City vacancy rate stands at 5.4%, up on the same point last year by 90 basis points, but still down on the 10-year average of 6.7%, says Savills.

The average grade A rent for 2017 so far in the City core is £61.90 per sq ft, and in the City fringe £59.17 per sq ft.

Key deals to complete in the City recently include visual effects company Industrial Light & Magic (owned by the Walt Disney Corporation) taking 47,010 sq ft at Lacon House in the City fringe (Theobalds Road, WC1), joining other tech companies Argus and Exterion Media in the building. 

Philip Pearce, head of the central London leasing team at Savills said: “TMT occupiers were out of the blocks quickly this year as the sector continued to grow: snapping up space primarily on the City fringe, which offers both the type of space these companies tend to favour plus slightly lower rents than those found in the City core.

“But it’s not just all about tech. Total City take up for the year to date is up on the same point last year as occupiers from an array of different industries continue to be attracted by London’s unsurpassed position as a global financial and professional hub.”