Media and tech companies drive London office take-up – Cushman & Wakefield
Media and technology companies continued to dominate take-up of office space in London during the third quarter of 2012, says Cushman & Wakefield, accounting for almost 534,000 sq ft of the total 1.8m sq ft occupied during the quarter. This is more than 50% above the five-year quarterly average for the sector.
Media and tech companies accounted for 30% of all London offices taken up during Q3, compared with 25% for financial services companies, including banks, and 15% for legal and professional services companies, Cushman & Wakefield notes.
So far this year a total of 1.29m sq ft of new office space has been let to media and tech companies, 26% of all take-up, the firm says. This is 4% more than at the same point in 2011, in contrast to the total market, which has fallen by 5% during the period. Total take-up of London office space in Q3 was 1.8m sq ft, C&W says, compared with 2.3m sq ft in Q3 2011.
C&W says there are 3.4m sq ft of equities currently seeking office space in Central London, as active demand from the media & tech sector has continued to rise. Media & Tech currently accounts for 38% of active demand, compared with a five-year average of 18%. Active requirements include Google (750,000 sq ft), Omnicom (400,000 sq ft), Warner Brothers/Time Warner (250,000 sq ft) and Ogilvy & Mather (200,000 sq ft), the firm says.
George Roberts, head of London occupiers at C&W, says the sector “will increasingly fill the vacuum caused by the financial crisis”. Increased UK advertising spending and the wider availability of creative talent in the capital is driving demand, he says. And the attractiveness of locations such as Shoreditch offices and Clerkenwell office space is causing some traditional West End media companies to review their suitability as potential long-term homes, he adds.
