TMT is the most voracious occupiers of office space with 954,000 sqm (10.27million sq ft, up eight per cent on 2013) taken throughout 2014, outpacing the financial services and business services sectors in cities including London, Dublin, Amsterdam and Germany’s Big 6 - Berlin, Munich, Hamburg, Frankfurt, Dusseldorf and Stuttgart.
In Dublin, TMT was the most active sector in the office market with 35% of annual take up in 2014. Berlin saw TMT office take-up increase by 30% year on year with 132,000sqm (1.42million sq ft) taken, accounting for nearly 20% of all space leased. In Amsterdam TMT take-up amounted to 80,000sqm ( 860,000 sq ft), a 30% market share and double the long term average of 15%
London provided a different story with TMT office take up falling 20% to 330,000sqm (3.55million sq ft) year on year predominately due to larger requirements having already being satisfied. Munich echoed London but to a lesser extent with TMT office demand falling 11%,to 119,000sqm (1.28million sq ft), but remained in line with historic average in terms of market share (19%)
Bruno Berretta, Colliers International EMEA Senior Research Analyst, commented, “The TMT sector is rapidly expanding throughout Europe with significant employment growth, which affects the office, industrial and logistics property sectors.
“Where this market differs from other occupiers is that it often requires office space to be adapted to specific requirements, in particular flexible space and lease terms to accommodate growth or contraction at short notice. This is particularly true for start-up enterprises who are uncertain if they will still be operating within 12 months.”
Simon Ford, EMEA Data Centre Director, commented, “In the not too distant future we expect to see the role of the landlord evolving, shifting towards a hybrid role between real estate service provider and equity partners, in some cases. We can expect to see this trend continue throughout 2015 and years to come.”
Colliers International produces biannual TMT-focused research reports throughout EMEA, known as the IQ Report, which aims to identify the most established and emerging tech hubs across Europe and assess how this industry impacts and reshapes the office markets.