London’s booming technology sector is no longer merely a cluster of start-ups near Old Street Roundabout. Tech firms now take up almost a quarter of all office space in the City, new figures from property agents JLL and DTZ show.
Last year tech companies took over 1 million square feet of space in City offices, accounting for 23% of available space. By comparison, financial services firms occupied 21%.
The number of technology, media and telecommunications (TMT) firms in the City has risen sharply over the last decade, accounting for up to 9% of office take-up.
Responding to the JLL and DTZ stats, City of London policy chairman Mark Boleat said: “Businesses are increasingly open-minded about location as technology and transport improvements such as Crossrail increase connectivity across London. This means the City has to ensure its office stock is fit for changing occupier demand. This could mean, for example, that although the trend towards a smaller number of large buildings may continue we will see increased sub-divisibility to cater for smaller occupiers.
The Square Mile is playing an increasingly important role in providing space and the right business environment for “Tech City” businesses as they mature and move closer to their markets. We want the next Facebook, Twitter or Google to emerge from London. That can only happen, however, if they have access to the suitable space that will enable them to grow and flourish.”