Property advisor BNP Paribas Real Estate has been analysing progress in the sector and revealed that TMT businesses took up 28 per cent of all office space in London during the first three quarters of 2012. That uptake reportedly accounts for 1.77 million sq ft of London offices.
Meanwhile, in Germany, the TMT sector reportedly accounted for 23 per cent of all office space take-up in Munich in the first nine months of 2012. While Munich is the most popular location in the country for TMT firms, Dusseldorf also saw a notable rise in demand from the sector.
BNP Paribas Real Estate’s managing director for Central London, Dan Bayley, said: “The growth in the significance of TMT in Europe is set to increase further. This is good news, as TMT companies step up to fill part of the gap left by financial services firms.”
“Interestingly, the research shows how this key occupier group identifies with emerging locations/satellite markets within London and Paris, as they tend to base themselves within flexible, edgy and modern office space.”
According to an earlier study from the same real estate advisory firm, around 54 per cent of all TMT office space occupiers in London expect to increase the size of the workforce in the city over the next three years. The UK’s TMT sector is predicted to account for some 4.65 million sq ft of office space before the end of 2014.
Editor’s notes: In 2022, the total London office space take-up was 10.1 million square feet. Of this, 171,7000 square feet, or 17 per cent, was rented by companies in the TMT sector.
Down from the 2021 percentage of 29 per cent.
In 2022, the banking and finance sector dominated leasing activity in London and represented 27 per cent of office lettings. The professional services sector was a close second, accounting for 24 per cent of office space deals.
It is expected that in 2023 and 2024, take-up by those in the TMT sector will be lower than in 2022 due to the worldwide job cuts that started in the Summer of 2022 and have continued to roll out in companies including Amazon, Google, Meta, Microsoft, Netflix, Salesforce, Twitter, and Zoom.
In June 2024, BNP Paribas Real Estate sublet almost 30,000 square feet of fully fitted office space across the second and third floors of its former UK headquarters at 5 Aldermanbury Square in central London. This coincided with moving its City-facing teams to the newly fitted-out space on the building’s 18th and top floor.
It sublet the second and third floors to TradingHub Group Ltd, a finance-focused big data firm, and RingCentral, a telecoms software provider, respectively.