TMT tenants gain ground

Technology, media and telecommunications (TMT) companies are set to become one of the most active occupier groups across Western Europe, says BNP Paribas Real Estate.

In London, the TMT sector occupied 28% of the market during the first three quarters of 2012, securing more than 1.77 million sq ft (164,000 m2), according to research carried out by the firm.

In Germany, 4.1 million sq ft of office space was occupied by TMT companies during the first three quarters of 2012. The most popular locations were Munich - where the TMT sector occupied 23% of the market - and Düsseldorf, where the TMT sector occupied 22% of the market.

Within the Ile-de-France region, which includes Paris, the TMT sector occupied 5% of the 20,000 sq ft plus market during the same period of 2012, securing more than 495,139 sq ft. However, a large amount of TMT companies are start-ups, so much of the smaller space will also be occupied by this sector.

Looking ahead, the sector is set to continue to grow, with 54% of London TMT firms expecting to increase headcount over the next three years. In total, TMT sector UK office take-up is forecast to reach 4.65 million sq ft by the end of 2014 - equivalent to eight Shard towers.

According to the research, London was ranked by TMT professionals as the world’s second-most important TMT centre behind New York, but ahead of Los Angeles, Paris, Hong Kong, Berlin and the Silicon Valley.

'The growth in the significance of TMT in Europe is set to further increase,' said BNP Paribas Real Estate’s MD of Central London, Dan Bayley. 'This is good news, as TMT companies step up to fill part of the gap left by financial services firms.'