London's office space market soars thanks to media and tech companies

Keiligh Baker's picture

Property agents say the increase in London’s letting activity looks set to continue well in to 2019 thanks to the capital's technology, media and telecommunications industries.

They say supply shortages and a constant level of demand means there is little chance of a slowdown in take-up levels.

London’s creative industry showed the biggest need for more work space in 2018, with technology, media and telecommunication firms accounting for almost 30 per cent of all take-up.

Figures also reveal that in 2018 Central London office take-up reached 14.6m square feet (sq ft) - 14 per cent higher than the long-term average and the highest level since 2014, according to the latest research from global property advisor Knight Frank.

William Beardmore-Gray, Knight Frank's head of Central London, said: “We’ve had a perfect market for the last 12 to 18 months. Will it continue? I think if we have some resolution which is short of a hard Brexit, then we will see the market continue to move in the way that is has done.”

“We are seeing no let up in the expansionary nature of demand across almost all sectors...the tech sector has continued to move forward very strongly.”

Other recently published figures reveal that commercial take-up within the City of London has reached its highest levels in three years, with letting activity in the Square Mile hitting 6.5m sq ft in the last 12 months.