Tech and media firms increase share in European office market

 
Kasmira Jefford
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TECHNOLOGY, media and telecoms companies (TMT) have increased their share in the European office market to a fifth of total take-up in the past four years, according new research.

The latest report from Savills published yesterday shows that the TMT sector has increased its share of Europe’s total leasing market from 15 per cent in 2009 to 20 per cent in 2012.

The sector came second to business and consumer services companies, which continued to drive demand with a 28 per cent share of total take-up.

In contrast, take-up from public sector companies, the insurance and financial sector has weakened.

Leasing activity in general across Europe saw a 2.2 per cent decrease in 2012 compared to 2011, however some urban areas such as London City, Frankfurt, Amsterdam and Paris saw higher levels of take-up last year as a result of some big deals.

Eri Mitsostergiou, director of Savills European research, said: “Looking forward we expect demand and supply in the core markets to remain balanced, while the more peripheral markets will remain subdued until we see an improvement in business confidence.”
Recent research from Colliers International showing TMT firms accounted for 30 per cent of take-up in the City last year, up from 26 per cent in 2011.