Internet firms are looking for more than 46,450m2 (500,000 sq ft) of office space in the Thames Valley as the sector continues to boom.
US Internet network provider Cisco Systems is looking for 37,160m2 (400,000 sq ft) along the M4, following its leasing of 7,432m2 (80,000 sq ft) on Stockley Park with an option to take a further building.
The firm is believed to be looking for space to expand over the next five years and has considered Prudential’s Green Park, MEPC’s Lakeshore and the third phase of Stockley Park. Colliers Erdman Lewis advises Cisco.
A home-grown hi-tech firm, Scottish Telecom, is looking for 4,645-5,574m2 (50,000-60,000 sq ft) of expansion space in Milton Keynes, and the same amount along the M4 corridor, through Knight Frank.
The M4 requirement is believed to be for the relocation of Internet service provider Demon from its base in Finchley. Scottish Telecom bought Demon last year.
Scottish Telecom is tipped for a £1bn flotation later this year and, despite competition from free Internet service providers, such as Dixons, Demon has added 50,000 subscribers in the past year.
Internet retailers will join the service providers in the search for accommodation, according to a report by FPDSavills. It estimates that up to 1.2m m2 (13m sq ft) of storage and distribution space could be required by Internet retailers within the next five years. As well as larger facilities, major retailers are likely to demand smaller home delivery depots for groceries ordered over the Internet.
See Gummer, p69
