Rise of the Media Sector

Metropolis has been undertaking research into the rise in office demand from the media sector in London.

Analysis of office lettings over the past two years shows that media and IT sectors have done much to drive the resurgence of office demand, alongside latterly financial, professional and business services.

The Metropolis research estimates there are currently 80 medium/large office requirements by media firms (advertising, marketing, public relations and broadcasting) in central London, including Sony, ITV and AKQA. Current demand totals 2m sq ft of office lettings over 2015 and 2016 if all current searches come to fruition.

Nearly 1.2m sq ft of central London office space was let to media firms in 2014 including: Havas taking 183,000 sq ft at 3 Pancras Square, Kings Cross; Omnicom’s 168,000 sq ft letting at Bankside 2 Southwark Street; and Euromoney taking 48,000 sq ft at 8 Bouverie Street, EC4.

There is a moderate supply squeeze in supply of new London office space in 2015, with a number of large developments due to complete in 2016. Consequently, finished developments are coming under closer scrutiny and a number of media companies are under offer on recently completed space.

In addition there are a large number of smaller media firms currently based in buildings set for demolition in the next two years. Discussions with Metropolis research suggest a large number of decisions are due to be made in summer 2015.

Looking ahead, Metropolis forecasts that with the combination of lease expiries, expansions, mergers and new market entrants; media sector office moves could reach an average of nearly 1m sq ft per annum in central London over the next few years.

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