London’s South Bank has become the UK’s leading media cluster with media and media-related companies (Advertising, Marketing and PR) accounting for 34% of all Take-up in the South Bank since 2009, totalling 1.67 million sq ft.
Since 2009 Media companies and those across the Advertising, Marketing and PR segments have become an increasingly key component of leasing activity in South Bank. In 2009, companies from these sectors accounted for 13% of total Take-up, rising to 19% in 2010 and 2011, 23% in 2012, and 51% last year. In October advertising group Omnicom completed a deal for 370,000 sq ft at Bankside 2 and 3, the second largest deal in Central London this year, meaning that these sectors have accounted for 39% of the recorded 1,220,007 sq ft Take-up in 2014 to-date.
Analysis by USP shows robust demand from these sectors at all levels. Since 2009, some of Central London’s largest leasing transactions have involved Media, Advertising, Marketing and PR occupiers in South Bank; most notably News UK’s decision to take 430,000 sq ft at The Place in 2013, Ogilvy & Mather’s move to Sea Containers’ House the same year (226,000 sq ft) and publishing group United Business Media relocating to 240 Blackfriars Road.
However, of the 130 deals involving these sectors since 2009, over two thirds (77%) were in the 5,000 sq ft – 10,000 sq ft bracket, illustrating the desire of smaller organisations to cluster around larger ones.
Jules Hind, Partner at Union Street Partners, said:
“It is incredible that an office market spanning just 20 million sq ft has attracted some of the biggest leasing deals of the last few years, all in and around the media sector.”
“The market’s inherent vibrancy and cultural elements, the emerging retail offer, the connectivity from London Bridge and Waterloo, and the river frontage are all attractions for companies in the media sphere.”
“No other office market in the UK boasts the same critical mass of companies from these sectors as South Bank.”
Mark Fisher, Partner at Union Street Partners, added:
“The News UK letting was a significant moment, but in truth it merely accelerated a trend that was already emerging of London’s media sector moving south.”
“The market will continue to evolve, and expand southwards, but Media along with Advertising, Marketing and PR will continue to be a key component of the occupier-base moving forward, as the Omnicom deal underlines.”
BACK TO NEWS