Building space for the Knowledge and Creative Economy: how different is it?Mark KleinmanDirector - Economic and Business PolicyGreater London Authority

EXPO REAL, MunichMonday 7th October 2013

Responding to Demand• Technology, Media, Telecommunications companies

now outpace financial firms in office space.• In 2013 TMT acquired 869,000 sq ft of office,

compared to 513,000 sq ft taken by financial firms.• TMT set to acquire 1.6m sq ft of office space in the

City by the end of the year (Knight Frank, 2013)• Forecasting TMT to acquire 1.8m sa ft of City office

space in 2014• Major TMT property deals in 2013 in London include;

• Amazon at Sixty London, Holborn Viaduct (212,000 sq ft)• Publicis at 40 Chancery Lane (96,000 sq ft) and Turnmills

(58,000 sq ft)• FTI Consulting at 200 Aldersgate Street (91,000 sq ft)• Salesforce.com (13,500 sq ft) at the Heron Tower

Key partnersWorking with:•Members of the cluster – Need to understand the innovation ‘ecosystem’. We’ve done this through Tech City UK. •Investors – Understand what would draw them to the area.•Business support infrastructure – Identifying gaps such as broadband and co-working space and encourage the market to respond •HEIs – encourage partnership with firms and a coordinated response to demand (from skills supply to incubation) •National Government•Local Councils and Residents

Where to make spaceAreas of economic activity for the knowledge economy change quickly. Tech City, and the City fringe area is a prime example.These areas can also fall across a number of traditional ‘boundaries’ making planning processes difficult.

Case Study: Tea Building• Refurbishment began in

2001• Refurbished incrementally,

primarily by AHMM• Building has adapted from

housing fewer large firms to more smaller ones

• Two key tenants (Mother and Shoreditch House) have attracted young creative firms

• Green Tea Programme, begun in 2010 to upgrade environmental credentials

Case Study: Google

• Google consolidating its multiple London offices into one HQ in Kings Cross

• Currently employs 2,000 but office accommodates 4,500

•  £650million project• To be completed in 2016• Expected to draw other

technology companies to King's Cross - including startups

What we want to achieve

• Attracting high skilled individuals• Giving businesses as much growth opportunity as

possible• Co-working spaces• Affordable office space

• Promoting the area to attract the wider UK knowledge economy and international knowledge economy

• Improve connections with the local community to ensure benefits of growth are shared

• Ecosystems need diversity – of sectors, firm size, human capital

Thank you

Mark KleinmanDirector – Economic and Business PolicyGreater London Authority