The City needs to deal with unprecedented challenges and disruption, mostly driven by technology.
So far, the City core has not, unlike some locations, been able to attract the TMT occupiers which have driven higher take-up across London.
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TMT take-up over the last 5 years represents 9% in the City core market vs 21% in the rest of the City submarkets
The City is competing against a range of newly established markets away from the core which offer authenticity, vibrancy and amenities
The financial services sector is facing digital disruption from technologies such as blockchain and other ‘fintech’ innovations
Companies in the financial services sector will have to become more diverse, employing more ‘tech’ talent and collaborating more with third party providers
Financial services firms will focus on how their building and its environment can attract and retain skilled staff and encourage innovation and collaboration
The City needs to continue to adapt to shifts in occupier requirements looking at issues from amenities and public realm to green space and the presence of incubators and accelerators
If this is managed correctly, demand from a wider range of occupiers will increase in the City
Graduate talent will locate to the east of London due to the relative affordablility
London’s centre of gravity is shifting eastwards - in twenty years, Bishopsgate could feel as central to London as Kingsway is now
Rents in the Central city submarket will rise by 14% over the 5 years to 2020 - but could see much higher rates of increase if developers are innovative and the public sector maintains momentum