The technology and media sector (TMT) has set a record of sorts by acquiring huge volume of space in London during the first five months of 2017.
According to a report from international real estate advisor Savills, tech and media companies accounted for the greatest proportion of City take up so far, this year, taking 517,069 (48,036 sq m) of space out of a total of 2.25 million sq. ft. (208,699 sq m) to the end of May 2017.
“This is the largest amount of take up ever by this sector in the first five months of a year, representing a 20% share of the market, ahead of the professional services sector at 17% and insurance and financial services sector at 14%,” Savills said in its report.
Recent key deals in the City include visual effects company Industrial Light & Magic (owned by the Walt Disney Corporation) taking 47,010 sq ft (4,367 sq m) at Lacon House in the City fringe (Theobalds Road, WC1), joining other tech companies Argus and Exterion Media in the building.
These deals underscore the importance of London to the technology and media companies, as they continue to invest in the City foreseeing better prospects. Their presence in London also reaffirms their faith and trust in the City despite the UK exiting the European Union.
Philip Pearce, head of the central London leasing team at Savills comments: “TMT occupiers were out of the blocks quickly this year as the sector continued to grow: snapping up space primarily on the City fringe, which offers both the type of space these companies tend to favour plus slightly lower rents than those found in the City core."