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Tech and Construction Key to Manchester’s Next Wave of Growth



At Refresh PR two of our passions are the built environment and technology, so there was great excitement in the office last week when a new report identified the tech and construction sectors as key to Manchester’s - our home city - next wave of growth.

 

Published by property consultants Knight Frank, the report flagged that, generally speaking, the more commonly used definitions of tech are not broad enough and don’t take into consideration verticals including energy and environmental services, advanced manufacturing and media, advanced materials, life sciences, and marketing and entertainment. According to the study, this oversight puts the future depth and vitality of the city’s tech sector at risk.

 

For instance, in the five years preceding 2017, IT and telecoms businesses accounted for 144 occupier agreements taking 700,000 sq ft of space in Manchester. However, when broadened to include these five specialist verticals, that number soars to 406 occupancy agreements amounting to 1.4m sq ft of office space.

 

A booming sector needs space to grow

 

As such, while Manchester’s technology sector is already booming (the latest 2018 Sunday Times Hiscox Tech Track 100 featured eight Greater Manchester companies) it’s critical that the city’s real estate continues to support the needs of tech businesses. As the sector continues to grow businesses will increasingly demand office space that can flexibily cater for, and support, their needs as they evolve. Occupiers want the opportunity to scale-up and down when necessary and will be prepared to pay a premium for this privilege.

 

Indeed, the 28-page report, Catching the Next Wave: Manchester, Technology and Real Estate, emphasised that office space in the city must be both adaptable and supportive in order for tech to thrive. This way, the city can nurture the development of small, fast-growing companies that are key to attracting the attention of tech titans searching for secondary HQ locations outside the capital.

 

Success attracts success

 

Already, Manchester’s thriving technology sector has begun to attract global behemoths such as Amazon, which recently confirmed that it will take over 90,000 sq ft of space in Hanover House in the Northern Quarter. The new Northern hub will be the tech giant’s first corporate office outside of London in the UK and home to 600 staff specialising in software development, machine learning and research and development.

 

In addition to Amazon, advertising giant WPP, also announced that it is close to finalising a deal to move its entire Manchester workforce to the former Granada Studios development. The move would see 450 communications experts from Code Computerlove, MediaCom, JWT, Wavemaker and possibly Kantar consolidating offices under one roof. While not a ‘traditional tech’ company this is a prime example of a business that falls into the broader definitions of technology outlined in the Knight Frank report.

 

These two recent announcements follow on from technology services giant CGI announcing that it is set to take over 7,000 sq ft of Salford’s former Soapworks as its Northern headquarters. The £400K transformation of the former Colgate Palmolive factory is already home to a cluster of tech corporates including TalkTalk and the government’s national cybercrime operation.

 

Manchester – the second city

 

It is perhaps not surprising that so many tech giants are turning to Manchester as a second home for their UK operations. The most recent Tech Nation report revealed that almost 70% of tech investment in 2016 took place outside of London, with £78 million of this invested in Manchester, making it the UK’s second largest tech cluster with nearly 70,000 employees.

 

Tech companies are without doubt the industrial giants of our age, and Manchester’s real estate market is fast becoming a hotbed to house them. Whilst the current growth is very promising, it is vital that the city continues to build on this momentum by providing diverse, collaborative and adaptable work spaces too keep up with demand.

 

 

 

 

Tagged with: B2B PR agency Manchester , Manchester, North West , PR, PR agencies Manchester, PR Agency Manchester, PR campaign essential, PR Manchester, Public Relations, Public Relations North West, Tech PR Manchester agency, Tech PR. Digital PR

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