Technology and media companies continue to spur demand for space in the City office market

 
Kasmira Jefford
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TECHNOLOGY, media, and telecoms companies continued to shore up demand for office space in the City in the first quarter of the year, according to research published today by Colliers International.

The property advisory firm said the net amount of space occupied by TMT firms in the City market increased by over 150,000 square feet in the period.

Demand was driven by the likes of US online giant Amazon, which has taken up 200,000 sq ft at AXA Real Estate’s Sixty London Scheme on the Holborn Viaduct.

TMT firms remain the largest single business sector in terms of demand across Central London overall and accounted for 1.2m sq ft of take-up in the quarter.

This represented 40 per cent of total deals recorded in the first three months of the year. Within the West End market that proportion rose to 63 per cent, boosted by the letting to Google at King’s Cross.

The West End is seen as the traditional heartland for the sector but hefty rents have prompted occupiers to look further afield.

Guy Grantham, director of Research at Colliers International, said: “Whilst the banking sector is on the back foot, media and tech continues to be a major contributor to positive absorption in the City market.

“Tech occupation has increased by over 28 per cent in the City market since 2009, up from 5.6m sq ft to its current level of 7.2m sq ft,” he said.

Meanwhile banking sector occupation shrunk by five per cent (629,000 sq ft).

But Grantham warned that only a quarter of deals are over 5,000 sq ft and doubts remain as to whether the sector can fill the void left by banks.