Unprecedented Demand for Quality Office Space in Manchester as Tech Companies Move in
The surge of tech companies setting-up and moving into Manchester has seen the demand for quality office space increase in the city.
Both SME firms and large household names such as Amazon and Booking.com have chosen Manchester for their Northern operations, with GCHQ also announcing plans to open a new state-of-the-art facility in the city.
“GCHQ has the potential to have the same effect, if not more than the BBC’s relocation in my opinion. It’s a global industry with huge growth behind it,” commented Tim Newns, Chief Executive at MIDAS.
“I am massively encouraged by the growth and investment we’ve seen over the past 12 months. If certainty starts returning, I think we could see a huge amount of pent up investment coming into the market.”
Deloitte’s annual crane survey highlighted a 37% increase in office space construction last year compared to the two years previous with 2.1m sq ft across 13 office developments.
The quality of space for tech companies is critical, too, with many new office developments incorporating leisure facilities and dedicated break-out spaces such as roof terraces to specifically appeal to tech firms.
A larger pool of professional talent
One of the major players in the tech-boom in Manchester has been the increasing pool of top talent to employ.
Young professionals are flocking to the city, whilst retention rates for graduates who opt to settle following their studies are also high. And with an increase in younger workers opting for city-living over a commute from the suburbs, demand for quality rental accommodation has also soared – evident from the number of cranes that hover above the Manchester skyline.
This led to a record number of residential units delivered to market, with 2,569 new homes and 22 new residential developments currently under construction – double that of two years ago. In fact, the number of new homes expected to be delivered in the next two years will likely match the previous decade.
“Investor confidence is thriving. With creative, media and tech occupiers leading some of the major office deals in 2018, twinned with growing diversity in talent, these are good foundations for regional growth in the years to come,” concluded Deloitte’s Simon Bedford.