Tech firms dominate take up in central London

Companies operating in the tech and media (TMT) sector have accounted for the greatest proportion of take-up in central London so far this year, fresh figures show.

According to data from Savills, TMT firms have taken 517,069 sq ft of space out of a total of 2.25 million sq ft to the end of May 2017, which is the largest amount of take-up ever by this sector in the first five months of a year.

Take-up by TMT firms represents a 20% share of the market, ahead of the professional services sector at 17% and insurance and financial services sector at 14%.

City take-up was 292,764 (27,198 sq m) in May, with 12-month rolling take-up at 5.9 million sq ft, up 19% on the long-term average.

The City vacancy rate stands at 5.4%, up on the same point last year by 90 basis points, but still down on the 10-year average of 6.7%, says Savills.

The average grade A rent for 2017 so far in the City core is £61.90 per sq ft, and in the City fringe £59.17 per sq ft.

Philip Pearce, head of the central London leasing team at Savills, said: “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. But it’s not just all about tech.

“Total City take up for the year to date is up on the same point last year as occupiers from an array of different industries continue to be attracted by London’s unsurpassed position as a global financial and professional hub.”