Commercial Property Register
September - December 2017www.compropregister.com
Sir Richard Leese, Leader of Manchester City
Council, said that Greater Manchester and the
North West is competing on an international
stage. He added that the airp
ort is helping by
attracting inward and outward investment.
He said that the airport expansion will be the
“biggest single construction project that Greater
Manchester has ever seen. It provides jobs for
20,000 people on site and a further 25,000
Charlie Cornish, Chief Executive of the airport,
also stressed the economic importance of the
airport to the region, saying that “it already serves
more than 70 airlines and 210 destinations, brings
£1.8 billion to the regional economy every year
and is the only UK airport outside London with
direct routes to Miami, Hong Kong, Singapore,
Atlanta, Washington and Boston.”
A mark of the attractions of Global Logistics as one of the prime logistics locations in the North
West is that it has pulled in such blue chip companies as Amazon and DHL. A vital part of the
investment in the airport is the construction of the £15 million Enterprise Way which is due for
completion early next year.
The road will connect offices and hotel developments within Airport City North to the rest of the site
and the wide transport network. When the whole project is completed it will have 464,500 sq metres
(5 million sq ft) of premium office space, hotels, advanced manufacturing, logistics and ancillary retail.
One interesting part of Airport City is the creation of a new social destination which will host com-
munity and networking events alongside industry debates. It is located in Manchester Airport Transport
To cater for the increased numbers of people using and working at the airport there will be at least
50 food and drink outlets.
Charlie Cornish emphasised how important the construction of HS2 and HS3 fast railway lines were to
the airport and its key role in the success of the Northern Powerhouse.
Like the rest of the UK, the
North West has been affected
by the slowing economy and
the uncertainty over Brexit.
What that has brought is a
steady improvement in the
market rather than a heady
However, this is only part of
the story because the long-term
prospect are what is worth
concentrating on, which will
add to Manchester’s increased
role as a global business centre.
Transport improvements are
at the heart of the prospects for
economic growth in the region
and centre around the arrival
of the HS2 line from London
but, more importantly for the
region, the HS3 route linking
the major northern cities.
Without that, the prospect for
the Northern Powerhouse is
It also helps the ambitious
growth of Manchester Airport
which has a £1 billion
investment programme and
rapidly expanding Airport City
with its range of commercial
Underpinning the office
market is the performance in
central Manchester with four
years of strong take-up. The
region is also being helpedby
the improvement in Liverpool
and the transformation being
engineered by Peel.
What matters as much
as anything is the ability of
these cities to offer commercial
accommodation that fits the
needs of modern business,
which it is reasonable to say is
An indication of the current
confident mood in Manchester is
that th big NOMA development
is moving along with a contractor
appointed f r the £34 million
refurbishment of Hanover, a
city centre warehouse.
It is being remodelled to provide
8,434 sq.metres (91,000sq.ft.
Grade A offices and 1,672 sq.metr
) of retail and leisure.
The developers, Hermes and the
C -op, hope to attrac t chnology
and creative companies to the property
in the emerging district for inn vative
businesses. Ben Tolhurst of Hermes
said: “Hanover will offer prime
heritage space that will appeal to
businesses wanting the connectivity
to Victoria station and the amenities
offered by the Northern Quarter”.
On the move
One of the more interesting
deals in Manchester brought
the largest Indian bicycle maker
to the city to open a £2 million
Hero Cycles produces one in 20
of all the bikes produced in the world
and is now likely to open a production
plant in the city, which is well known
for being the home of British Cycling.
Ideally, Hero would like to supply its
top bikes to the UK team.
Pankaj Munjal, Hero’s Chairman,
pointed to Manchester’s history of
innovation, citing computers and
graphene as examples, as another
reason for the move, together with
the large student population.
Hero already owns Avocet, a
Manchester based bike designer that
FOR THE CITY
If any company has influenced
the life of a major city, then
surely it has to be Peel with its
huge scheme for Liverpool
following on from the magic
it has created in Salford.
This is evident from JLL whose
Stephen Hogg said: “Growth in
Liverpool, in part led by
regeneration schemes such as
Peel’s £5.5 billion Liverpool Waters
and the new £1 billion knowledge
quarter, is drawing further interest
from institutional investors”.
Su h i the success of the office
ma ket that HMRC’s leasi
32,515 sq.metres (350,000sq.ft
Indi Building, which is wned
by Sh lborn Asset M nagement,
has cr a ed something of a
The problem has been caused
by the city’s success in the past year
which has taken so much out of
the market through lettings and
conversion to residential while
developers sat on their hands so
that a shortage became inevitable.
Noting the shortage of available
space, Ian Steele of GVA said:
“Given the current levels of
demand and absorption rates, it is
likely that this supply will diminish
within the next 6 to 12 months,
leaving t city without any
buildings that can offer occupiers
large Grade A floorplates”.
He added that this is likely to
reduc future levels of dema d as
well as Liverpool’s ability to at ract
large scale inward investment.
One major scheme going ahead
is in Lime Street, with ISG set to
deliver the £39 million mixed use
project for a partnership of Neptune
Developments, Liverpool City
Council and Sigma Capital on a site
owned by the Curlew Student Trust.
The scheme will have 5 retail
u its, a 10 stor y building of
student accomm dation with 412
units and a Premier Inn with 101
bedrooms. Andy McLind n of ISG
mmented: “T e Lim Street area
has been in desperat need of a
catalyst scheme to revitalise this
key thoroughfare near the centre
of the city. The mixed use scheme
represents the first phase of the
knowledge quarter master plan
and is a hugely important regional
project that will enhance the
ch racter and aspiration of this
key g teway in t city”.
Through boom and bust,
Manchester continues to
perform as it follows the long
settled path of being a
world-class city to match its
soccer teams and music scene.
The ambition is being stepped
up at MIPIM with an enlarged
corporate participation in a pavilion
on the Croissete. The market is also
holding up in all areas with the city
centre notching up a big take up figure again and steady
performances in Warrington, south Manchester and Salford Quays
to complete the picture.
The outlook for new development in the city centre is favourable,
particularly because of a shortage of prim st ck and further indicated
by the forward momentum of the major NOMA scheme by the
Co-op and Hermes. Bew development is also occurring elsewhere in
the region, such as another town centre project in Rochdale.
An important part of the equation is that former Chancellor of
the Exchequer, George Osborne’s enthusiasm for the Northern
Powerhouse is continuing with sufficient energy behind the
campaign to make it work.
The other important dimension is that Liverpool appears to have
broken out of the decades long cycle of decline and has lots of
positive things happening in the economy and property industry.
The fact that it has a growing city centre population of young
professionals surely says something about its attr ctions.
are hosting an open
day on Friday 17th March to
showcase 910 Birch ood Boulevard
Busine s Park, th ir latest
refurbishment of an 8,500sq.ft.
detached office building in
Birchwood, Warrington and also to
discuss further plans for Birchwood
Boulevard Business Park. All are
welcome - contact the agents,
BE Group or Knight Frank.
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