TMT Sector continues to lead office space markets

Technology, media and telecommunications (TMT) companies, are set to emerge as the key office occupier group across Western Europe in 2013, according to research conducted by leading commercial property advisor BNP Paribas.

London was ranked as the world’s second most important TMT centre behind New York, with its flexible, edgy and modern offices and international transport links luring in companies from overseas.

Key European countries Germany, France, Spain and Italy had significant TMT representation in their office space markets, with TMT occupation over 20% across the board.

54% of TMT firms surveyed said they planned to increase their company’s “headcount” in London over the next three years, supported by government initiatives that are geared towards making East London the most attractive destination for TMT companies in the world.

The report forecasts that TMT sector office take-up in the UK will reach 4.65m sq ft by the end of 2014 – equivalent to an area the size of eight Shards.

German cities Munich and Düsseldorf enjoyed 23% and 22% TMT occupancy rates respectively, with the Ile-de-France region, including Paris seeing an increase in TMT companies taking up residency there.

Commenting on the findings, BNP Paribas Real Estate’s MD of Central London, Dan Bayley said: “The growth in the significance of TMT in Europe is set to further increase. 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.

"However, elsewhere in Europe locational preference varies but the preference is still for buildings, particularly in Spain and Italy, that are good value and well-connected both in physical transport and telephony terms,” concluded Bayley.