Manchester remains the top technology location outside London, according to a new survey, but the competition from other UK cities is growing.
Property investors are increasingly gravitating towards cities with strong tech links. The sector is such a key driver of the UK economy that there is naturally more demand for commercial and residential property in these areas. And tech companies are attracted to cities other than London for reasons including lower costs of living for employees, more affordable housing and lower operating costs.
In 2018, the tech sector accounted for 18% of all office take-up outside London, up from 16% in 2017. The South East dominated, taking a 57% share of the market.
Manchester, the third-largest UK city, retained its top spot in the table for a variety of reasons, according to a survey published by CBRE today. Tech Cities rates the cities based on a range of pull factors for tech businesses, such as level of education, concentrations of tech businesses and employment, cost of living, cost of office space and wage levels.
Ashley Hancox, CBRE executive director and UK head of office advisory and transaction services, said: “Creative industries are more important to the UK than ever. From tech to media and telecoms, the sector has flourished since the end of the financial crisis, and grown at a rate that cannot be ignored.”
Manchester already has a number of established creative hubs in the city region, including the Northern Quarter, MediaCityUK, The Sharp Project and Manchester Science Park. It is also home to up-and-coming areas such as NOMA, St John’s and Airport City.
Major tech or creative organisations in the city include the BBC, ITV, Fujitsu, Trader Media, NCC Group, Boohoo and AO.com.
Last year, 15% of all Manchester’s office leasing activity focused on the tech sector.
However, the survey shows that other UK cities are competing strongly for the top spots, with several new names breaking into the top five and top 10.
Both Glasgow and Birmingham have risen rapidly up CBRE’s ranking. Glasgow jumped from fifth place in 2017, when the survey began, into second, while Birmingham rose from seventh place to fourth.
Major tech businesses located in Glasgow include SAS Software, Siemens, FDM Group, Global Radio, Sage Group and FanDuel. Glasgow is also traditionally the main hub for broadcast media in Scotland, so benefits from the presence of both BBC Scotland and STV at Pacific Quay. The city will also be home to one of Channel 4’s new creative hubs.
Meanwhile, Edinburgh, where WeWork has just announced plans for a new office, retained third spot, as Reading slipped from second place into fifth.
Over the two-year period, Cardiff also significantly boosted its tech profile, according to CBRE, rising from 20th place to seventh.
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