Tech firms move into London offices

October 5th, 2012 Category: Office Cleaning

Throughout the recession and global financial crisis, London has been identified as a bright spot in the UK's commercial property sector.

While conditions have either deteriorated or stagnated in other parts of the country, office space in the capital has continued to be highly sought after.

And it seems this trend may be set to continue, as analysts have reported growing interest in the region among technology firms.

According to BNP Paribas, the City of London area is proving to be particularly popular, while many firms are also looking towards Stratford and King's Cross.

Speaking to the Financial Times, spokesman Paul Henwood said: "There is a great opportunity for investors to look more seriously at these kinds of locations, as well as the traditional core markets, but the entry price will be the key factor to a successful income."

Nevertheless, it looks as if facilities management specialists in the city are set to see demand for their services grow among rapidly expanding technology firms, as well as media and telecommunications companies.

Estimates from BNP Paribas suggest that in two years time, these firms will have increased the amount of space they occupy in London by about 1.2 million square feet. This, it noted, is double the size of the city's landmark skyscraper the Shard.

Amazon has already stepped up its presence in the area in the last few months, while Google, Oracle and Skype are also showing an interest in London.

This backs up recent observations from Michael Keogh, senior investment and economic analyst at Henderson Global Investors, who has also noted some areas of London are establishing themselves as "tech hubs".

Nevertheless, he said it is difficult to identify which places might be hotspots of activity in the coming year because the overall economic picture looks uncertain. Mr Keogh added that the market could take up to a decade to recover and said Britain is only two or three years into this process.