Knight Frank have published their latest research and it shows that demand has increased substantially for office space in the City of London from the technology, media and telecoms sector. In fact, firms in this sector took 931,000 square feet of space in the first nine months of 2012, which is an increase of a staggering 39% on the same period last year.
Knight Frank is an international global property consultancy and our landlord insurance clients will find a visit to their website very interesting for background information on trends in the property market.
By contrast to the growing demand from the high-tech sector, firms in the financial sector only took 620,000 square feet of new space in the firs nine months, which is a drop from the 680,000 square feet they took last year.
Knight Frank say that rising demand from the technology sector is a global phenomenon and they are seeing rising demand in the USA, Dublin and Berlin as well. They reckon that the Cit of London is “emerging as a focus point as it has the transport, telecommunications and power infrastructure to support this growing sector.” Apparently, high tech firms like to be near good transport hubs as well as “trendy cafes and bars for staff to frequent”.
Landlords with portfolios of residential property in and around London have reported strong demand from potential tenants but it remains to be seen whether the strength of the London market will spread to the regions.