Where’s the next UK tech hot spot?
The UK already hosts more than 1.6 million digital tech jobs based on Tech City UK’s latest stats. Over the next five years eight of the UK’s key cities alone will experience tech sector growth equivalent to £12.5 billion, and generating over 44,000 new jobs. London Tech is already a UK success story and it is on the cusp of even more growth.
So, what does this mean for real estate?
It’s created a new type of occupier; advanced ways of working; alternative workspaces and different expectations from landlords and their buildings. Businesses creating and operating tech and digital services are penetrating the UK’s regional markets and consolidating in distinct clusters. There has been little consideration as to how this is impacting these markets until now…
In partnership with Tech City UK (a government funded programme focused on accelerating the growth of digital businesses across the UK), we have created a series of eight infographics that look at the UK’s fastest growing tech regions. This project, led by JLL’s Marketing and Research teams, focuses on the distribution of tech businesses throughout each city, highlighting current conditions and emerging property trends. They present practical, need to know information which is now accessible to all.
Key highlights include:
Real estate is an enabler – Real estate performs a vital role in attracting and retaining talent, promoting collaboration between businesses and in fostering knowledge sharing. Co-working and incubation spaces are on the rise in all eight clusters.
More tech firms will scale-up – Further growth means new office demand and disruptive real estate change for all eight clusters. Already tech start-ups in both London and regional cities have taken spaces in prime office buildings traditionally the preserve of financial and professional services.
There remain challenges to overcome – Many clusters lack sufficient innovation space floor space and the low office supply pipeline in some creates difficulties securing suitable stock. Major investment is underway, be it Crossrail (The Elizabeth line) in Reading and Bracknell or rail electrification in Cardiff and Swansea. Further infrastructure improvements are needed. The real estate sector needs to navigate and better match the expectations of tech companies to office buildings.
The report is considered to be the most comprehensive analysis of the clusters powering the UK’s digital economy. Now in its third year, Tech Nation 2017 opens with a forward from the UK Prime Minister, Theresa May. It’s a helpful insight into what awaits the UK’s economy. I can recommend it.