TMT office space 14th July 2014

Take-up of space from TMT (Technology / Media / Telecoms) occupiers rose 107% in London last year.
 
A recent report said the explosion in take up from the sector contrasts with the more mature US hubs of San Francisco and Silicon Valley which saw declines of 55% and 34% respectively. The supply of flexible and scalable space sought by TMT companies remains constrained, therefore start-ups and larger companies’ innovation divisions will continue to cluster in lower-cost fringe locations.

There ia also strong demand for space in emerging markets, including Sub-Saharan Africa, Eastern Europe and Latin America where activity is driven by the pursuit for increased market penetration and the rising competition for new talent within this sector. 

In central London, take up by the sector remained buoyant throughout 2013 reaching 440,000 sq m for the year, representing 37% of total activity. London’s large technology talent pool, vibrant creative and cultural scene, the city’s connectivity and provisions for capital raising contribute to its appeal to the sector. The areas around King’s Cross are drawing established TMT players with large space requirements, while small space users are attracted to the Southbank, Shoreditch and Whitechapel areas.