Tech occupiers are driving a resurgence in skyscrapers across North America, and London will be next to feel the impact, according to a report by Knight Frank.
The Global Cities Skyscraper Report reveals an increased appetite among technology and digital companies in the US for high-rise office space.
New York came second in the report’s global skyscraper index and is closing in on leader Hong Kong. In part, this is driven by increased demand from TMT tenants, including LinkedIn and Shutterstock.
Knight Frank chief economist James Roberts said London was next in line to see the results of the TMT sector’s shift from low-rise industrial space to office towers.
“In this sector you start to see trends emerging in northern California, usually San Francisco, then New York, then London, followed by the US regions and then the rest of the world,” he said.
“It is an economic and a psychological pattern and we would definitely expect to see the trend emerging in London next. It already is with Salesforce moving into the Heron Tower.”
Roberts attributes the shift to tighter constraints on space in major cities and tech firms such as Spotify, Pinterest and Google moving from Silicon Valley to San Franciso’s Bay Area.
emily.wright@estatesgazette.com
