A recent report by Knight Frank Research indicate an increase in demand for Offices in the City of London. Technology, Media and Telecomms ( TMT ) companies are responsible reflecting the growth in the East London tech city and its increasing significance in the London economy.
TMT companies acquired 931,000 sq ft of Office Space in the first nine months of 2012, up 39% on the 670,000 sq ft acquired in the equivalent period of 2011. In comparison, the financial sector has accounted for 620,000 sq ft so far this year, down from 680,000 sq ft in the same time period of 2011.
James Roberts, head of Commercial Research at Knight Frank commented:
Ă˘â‚¬Ĺ›This is part of a global phenomenon, as we are seeing rising TMT demand being reported in Chicago, New York, Dublin, and Berlin, as well as London. The City of London is emerging as a focus point as it has the transport, telecommunications, and power infrastructure to support this growing sector. It also plugs into the wealth of talented young tech and media workers who live in areas like Islington, Hackney, and Tower Hamlets which border the Tech City; so the workforce is close at hand.Ă˘â‚¬ĹĄ
This sector is taking advantage of the Transport hubs as well as the wealth of trendy cafes and bars that are popular with staff. Rents are also lower in the City of London compared to Offices in the West End and although many of these companies have offices in Shoreditch, Farringdon and Clerkenwell the growth now extends beyond these areas.