Future of M25 Offices

Knight Frank have recently published a report on the future of the office market around the M25 motorway.

Key conclusions include:

The South East office market is a major attraction to occupational demand from the technology sector. The tech sector has accounted for, on average, 23% of annual office take-up in the region over the
last five years and has absorbed some 3.8 million sq ft of office transactions. Examples include Farnborough Business Park or the Aerospace Centre, which are driving technology sector take-up levels.

Also, occupiers drawn from other sectors have been transformed by the application of new technology to business processes, often fuelling new property requirements;  Gartner, Future Electronics, VMWare and
Service Now are major players in this field.

Co-working and flexi providers – not yet prominent within the M25 market – place tremendous emphasis on providing real estate and associated services that support the creation of a highly connected,
collaborative community housed within a modern, curated and highly serviced environment and could be a major sector in the future. The serviced and co-working offering is becoming increasingly sophisticated to take advantage of the major corporate occupier presence around Heathrow. This occupational drive toward greater flexibility and amenity is filtering into the business park model where Stockley Park and Bedfont Lakes become more service orientated.

Occupiers want to attract and retain talented staff. They will locate in buildings and locations that support them in this task. They are seeking what ‘talent magnets’; locations that have a buzz, vibrancy and cohesion. New growth areas are appearing in West London with White City, Imperial College and the redevelopment of Television Centre, propelling West London to become a recognised and established London hub;

The knowledge economy is the trump card for the South East of England over other regions and indeed other European location.

Metropolis is tracking around 50 major office requirements in the M25 region.

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