In a report prepared for the Piccadilly Partnership, Savills said there were 376 business in the sector in 2008, accounting for 5% of all businesses. During the recession the number of people employed fell back from 15,000 to 11,600 but a gradual recovery of 1.1% is expected, meaning that by 2021 TMT employment in the city will have risen to 12,900.
In a poll of around 60 firms Savills discovered that most TMT businesses are willing to pay £8-15/sq ft and found a typical five-year lease too restrictive. Most of them have clustered around the Northern Quarter area because of cheaper rents and proximity to the centre.
But Savills said there is no shortage of cheap space in the city: two million sq ft is available with 300,000 sq ft below £15/sq ft. The problem for many occupiers is finding "medium quality" space at £10-15/sq ft.
The report says new schemes such as The Hive, which may have cost £100-120/sq ft to deliver, cannot be offered at less than £20/sq ft. But there is scope for refurbished buildings.
Source: The Business Desk
