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dTZ | In Situ
TMT continues
to storm ahead
Why IS The TMT SeCTOr SuCh A TAlkInG pOInT
In TOdAy’S GlObAl reAl eSTATe MArkeT?
karine Woodford:
TmT occupier activity has been on the
increase across several global office markets in the last couple
of years, in many cases picking up the slack left by weaker
demand from the financial services sector in the face of the
global economic downturn. In central London, take-up from TmT
companies has been above trend for a number of years and as
demand from the financial services sector plunged in 2011, TmT
became the sector with the largest share of overall take-up.
This trend continued in 2012, with TmT committing to more
than 160,000 sq m over the year. In new York, demand from the
technology and media sectors is for the first time neck and neck
with the finance sector and in both Singapore and hong Kong,
TmT stands out as an increasingly important sector for growth
and investment. TmT activity is rivalling the traditional sectors in
many global cities and this is creating a talking point (Figure 1).
rob Cookson:
TmT occupiers have substantially different
property needs compared to other occupiers and we are seeing a
shift in the traditional real estate dynamic in key global markets
as a result. The rapid pace of growth, high levels of merger and
acquisition activity, and employee profile, fosters a need for
landlords to offer TmT occupiers highly customised, flexible
and efficient space. Also, the sector is constantly evolving as
players seek new markets for growth. For example, we anticipate
increased expansion into second and third tier cities in India
and china and emerging markets in Latin America, Africa and
eastern europe. The changes in office space requirements and
the global nature of the sector are hard to ignore.
FIGure 1: TmT ShAre oF ToTAL TAKe-uP
In KeY GLoBAL mArKeTS, 2012
FIGure 2: TmT heAdquArTerS BY SuB-SecTor And
reGIon, 2012
The Technology, media and Telecommunications (TmT) sector accounts for a third
of the 50 largest global companies by market cap, and TmT companies are playing
an increasingly important role in some of the world’s most significant real estate
markets. dTZ research recently published a report on the TmT sector from an
occupier perspective, providing an insight into property markets across major global
TmT hubs. In this article dTZ’s Karine Woodford and rob cookson examine the rapid
rise of the sector and explore some of the key trends and challenges driving it.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Silicon
Valley
Bengaluru San
Francisco
dublin new York London
Technology
63%
29%
9%
media
9%
68%
23%
Telecoms
12%
40%
30%
19%
uS
Asia Pacific
europe
other
