Technology drives the office boom

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Demand for office space is increasing, especially from technology companies.

According to a July 2017 Telegraph article, the greatest demand for office space is in London. Much of this demand is driven by technology, media, and telecoms companies, which are collectively known as the TMT sector.

Google is building a large campus in London’s Kings Cross area that will accommodate 7,000 workers. Amazon, Apple and SnapChat offices have already opened London offices.

In the past, some landlords regarded TMT firms as risky tenants not interested in long leases. While this may be true of some small startups, the giants of the TMT world such as Amazon and Apple are committed to long leases.

Many workers in the TMT sector are freelance. Though a lot work from home, not everyone likes the loneliness of working on their own. To cater for these freelancers, coworking offices have been created where freelance workers can rent desk space and share facilities such as cafes and gyms. People working at these offices are also attracted by the opportunities for networking and socialising.

Other British cities – notably Manchester, Liverpool and Newcastle – have seen an increased demand for office space from TMT companies. Google has a small sales team based in Manchester. The media giant Sky has offices in Manchester, Newcastle and Leeds. There are many smaller TNT companies setting up offices in major UK cities too.

Commercial mortgages are available at reasonable rates for investors who want to purchase office buildings that cater for the demand for space from technology businesses.

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