Agenda. 1. Welcome James Max 2. Our headline findings Dan Bayley and David Herzog 3. Click onto Spencer Kelly 4. Panel discussion
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2 Agenda 1. Welcome James Max 2. Our headline findings Dan Bayley and David Herzog 3. Click onto Spencer Kelly 4. Panel discussion 2
3
4 Growing pains The Telecoms Media & Technology sector has evolved and diversified We think it is more apt that it now becomes Media Tech 4
5 Growing pains 2012 s study conclusions 5
6 Growing pains Our 2015 methodology We commissioned an independent business consultancy Meridian West to undertake the research This consisted in interviewing senior real estate decision makers from technology, media & telecom companies Key factors that are believed to play a fundamental role in the decision making process when choosing a property were studied Applied our research and expertise 6
7 Growing confidence Revenue Headcount One year growth rate in line with 2012 research: 27% vs. 25% Three year growth rate much higher than 2012: 79% vs 44% New School set to grow their revenue at more than double the rate of Old School Total headcount of survey participants now: 40,805 New School expect to increase headcount whereas Old School will keep the number flat 7
8 Growing confidence Quick and Dirty 8
9 Growing confidence The reality A Salesforce office is mainly a place to meet, a place to collaborate so how we fit out the space is really important. About 80% of 90% is open plan space and we try to downsize the desks to really squeeze people in. We want to have that buzz and we want to have people talking to each other. Markus Huber, EMEA Real Estate, Salesforce 9
10 Growing apart As the sector has evolved, a marked difference has emerged between what we classify as Old School and New School companies and their preferences and growth aspirations 10
11 The oldies Old School Telecoms Media and Broadcasting Graphic design Hardware developers Publishers Classic marketing, advertising and PR 11
12 Old School Headcount Floorspace 12
13 Old School News UK consolidating floorspace Total over 400,000 sq ft The News Building 13
14 The newbies New School Web-based services Software developers App developers IT services Digital marketing, advertising and PR 14
15 New School Headcount Floorspace Location / amenities 15
16 New School Story of Seven Dials Warehouse 2008 Expedia takes 36,000 sq ft 2011 Expedia increases office space Facebook increases office space 2014 Facebook increases office space King.com increases office space 2015 Facebook increases office space (rumoured) x3 x6 x3 x2 x4 16
17 Destination London London leads the way for the Media Tech Berlin showing an increase in take up We have just taken a huge office in Berlin and it s one fifth of the price of London, so the gap is huge. The office in Berlin we found on the third day of our search, whereas it took me six months to find the office in London because there is so much more pressure in London on the real estate market. I would say the quality of the offices in Berlin is also a lot better. Maxim Romain, Manager, Wayfair 17
18 Sq ft (000) Media Tech take-up European comparison Destination London 4,000 3,500 3,000 London Berlin Paris Munich 2,500 2,000 1,500 1,
19 Media Tech take-up next three years Destination London 4,000,000 London London 5 year avg ( ) Forecasts 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,
20 Destination London Current Media Tech requirements Old School New School 20
21 Steal my thunder Serviced Offices historical take-up 8% 7% 7% 6% 5% 4% 3% 4% 2% 2% 1% 0% 1% 0% 0% % Media Tech 21
22 Steal my thunder Old School New School 22
23 A story of Ssssses Most preferred locations 23
24 Further education There is still some educating to do when it comes to rental levels 1/3 of media tech firms were surprised at levels of rent in their preferred locations Developers: look at mixed-use schemes in emerging areas 24
25 At first glance Companies want modern, bright and spacious offices 25
26 Surprise! Bolt me down Overwhelming lean towards fixed desks both for old school and new school media Hot-desking not popular amongst the media tech sector Break out areas are very important 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Collaborative Old School New School Individual fixed desks 26
27 Office of the future Air conditioned: 71% Exposed ceilings: 51% Suspended ceiling: 49% Fixed desks: 84% Single floor: 58% Raised floor: 60% Hotel-style reception: 52% Location: 70% 27
28 The word on the street It is an anachronistic legal structure to enter into a lease. It is not relevant in today s market for businesses that are agile and fluid. If I am a business I want to know that if I win a project then I can flex up for six months and take space, but I don t have to commit to something for five years to do a six month project. Charlie Green, co-ceo, The Office Group I think Whitechapel is probably the next area that is going to grow quite dramatically: it has relatively low rents and people like a bit of grit. Shoreditch is quite expensive but it has room to grow. I am told Peckham could be the new Shoreditch I am told Peckham is cool. Paul Williams, Director, Derwent London I still think people look at addresses and make assumptions. We want to have that professional service, high value kind of association. I think if we were a tech company in Croydon some people might make a judgement against that. Peter Byre & Stephanie Abadom, Concep 28
29 Are we all Media Tech? 29
30
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