The TMT sector looks set for continued growth, with tech firms likely to account for 30% - 40% of local market activity during 2018. We saw growth of the serviced office and co-working sector during 2017, where in addition to London and the South East, activity accelerated in Manchester and Birmingham. This market only accounted for around 6% of take-up across the regions in 2017, but with occupiers, including many large corporates, looking at more agile working practices and chasing flexible solutions, we see this market growing in scale. Almost 75,000 sq ft of serviced / co-working office space was transacted in Leeds during 2017 and we expect this market to increase again during 2018.
The rise of WeWork will continue at pace during 2018, as they look to leverage their technology and supply chain to attract more and larger scale occupiers. ‘Powered by We’, part of WeWork’s enterprise business line,
caters to companies with more than 1,000 employees. ‘Powered by We’ now represents 25% of WeWork’s total membership and is the company’s fastest-growing market segment, growing by 370% from its launch in Q3 2016. Outsourcing contracts and corporate occupation management looks set to play a significant role in the rise of this sector, and will be an area to watch in 2018.
Following a standout 2017 for the Leeds office market, accompanied by indications that the economy may have grown faster than predicted in 2017, and hopes for more positive Brexit talks going forward, we look ahead with optimism. There will undoubtedly be interesting opportunities for occupiers and investors to explore and enjoy during 2018.
Roddy Morrison Director | National Offices +44 113 200 1810
roddy.morrison@
colliers.com
26 Perspective | Colliers International
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