Manchester Offices

[js1000]

Originally Posted by VDB

GVA measures "out-of-town" but I assume that's for South Manchester and - to a lesser extent - North and East Manchester.

Coincidentally, however - if we're comparing with Liverpool - Manchester's "out-of-town" office price per sq.ft is more comparable to Liverpool City Centre's price than it is to our city centre - which is in another league to be quite honest. There's another case for HS2 in Manchester - one encompassing the out-of-town market in the outskirts and another in the busy city centre market

And that's where Manchester Airport comes intonthe equation!

[VDB]

Just BDNW's take on what we were discussing yesterday.

Liverpool really doesn't appear to be doing well at the moment. Still, they're equal to us.. right?

New data shows mixed fortunes of NW office market

2nd May 2013

A REGIONAL office market report from Knight Frank shows the office market is weak in Liverpool but holding up in Manchester.

In Manchester take-up was 274,000 sq ft in the first three months of the year, up on the quarterly average of 197,066 sq ft in 2012, but 7.8% down on Q4. Prime headline rents stood at £30/sq ft and the availability of grade A space was 370,000 sq ft, 13% down on a year ago.

The vacancy rate dipped to 11.2%, lower than other regional cities which are 12-16%. Active requirements are around 700,000 sq ft, up 55% last year. The market saw six deals of more than 10,000 sq ft in the first quarter, with the average deal size just under 5,000 sq ft.

Deals completed included WorldPay taking 22,000 sq ft at 3 Hardman Square, Spinningfields, and Travel Jigsaw taking 63,000 sq ft at Sunlight House.

In Liverpool take-up for the quarter was just 35,000 sq ft, down 65% on the final quarter of 2012, and 42% down on a year ago. Some 28,000 sq ft was down to Bank of New York Mellon taking space at the Royal Liver Building. Headline rents stand at £20/sq ft.

Active requirements increased slightly to 275,000 sq ft and the availability of grade A space slipped to 212,000 sq ft, down 9.8%. The vacancy rate is 15%. Nationally there has been a slight increase in the supply of Grade A space, totalling 3,067,043 sq ft compared to 3,013,043 sq ft in Q4 2012, but this represents a year-on-year decrease of 11%.

A lack of new completions has resulted in double digit falls in Grade A availability noticeably in Birmingham (-33%), Leeds (-14%), Glasgow (-13%), Manchester (-13%), Newcastle (-12%) and Liverpool (-10%).

David Porter, head of Knight Frank’s Manchester office, said: “With virtually no speculative development we are now into a full pre-let market for those occupiers seeking grade A Office space of, say, in excess of 50,000 sq ft, or less in certain regional centres.

"The lack of good quality accommodation is driving interest from some of the larger UK developers who see the more active regional markets, such as Manchester, Aberdeen and Birmingham as an attractive offer outside of London and the South East.

"The likes of Hines, Development Securities and Tristan Capital are all active in the regions, typically in joint venture developer roles alongside a local property company or local authority."

[iamafreeman]

Originally Posted by VDB

Just BDNW's take on what we were discussing yesterday.

Liverpool really doesn't appear to be doing well at the moment. Still, they're equal to us.. right?

Now then no gloating please. Not very sporting, what.

Is there not also a potential risk if rates get too high and businesses look for accommodation in less expensive locations?

However, I suppose that must be balanced against the possibility of speculative office construction happening because potential returns are good?

[iamafreeman]

Originally Posted by jrb

Don't forget, at some point the 200,000 sq ft Project Tomorrow requirement will be announced this year as well. Boom!

Now then old son I may not have many years left and you keep spinning this story to me about "Tomorrow".

At this rate Tomorrow may come too late!

[VDB]

Originally Posted by iamafreeman

Is there not also a potential risk if rates get too high and businesses look for accommodation in less expensive locations?

I thought that might be a risk as well, but take-up in places like Salford Quays and South Manchester appears to be increasing on the back of Central Manchester's lack of availability - so there's obviously something about Greater Manchester which makes them want to relocate here so badly.

[jrb]

Originally Posted by iamafreeman

Now then old son I may not have many years left and you keep spinning this story to me about "Tomorrow".

At this rate Tomorrow may come too late!

Tomorrow always comes brother. Amen!

TBF, you can't launch a product that has teething problems or doesn't work properly.(Metrolink?)

Better to delay the launch and iron out any issues first.

Put it this way. They, whoever they are, wouldn't have taken additional office space on top of the original office space, if they felt the project had either stalled or gone backwards.

[iamafreeman]

Originally Posted by jrb

Tomorrow always comes brother. Amen!

TBF, you can't launch a product that has teething problems or doesn't work properly.(Metrolink?)

Better to delay the launch and iron out any issues first.

Put it this way. They, whoever they are, wouldn't have taken additional office space on top of the original office space, if they felt the project had either stalled or gone backwards.

Well I agree about getting things right before you launch.

Surely Metrolink is a quality product which rarely fails, isn't it?

[js1000]

Originally Posted by VDB

I thought that might be a risk as well, but take-up in places like Salford Quays and South Manchester appears to be increasing on the back of Central Manchester's lack of availability - so there's obviously something about Greater Manchester which makes them want to relocate here so badly.

I think the airport & balanced transport links to Scotland, North, Midlands & the South East are a big factor.

[neil]

From the businessdesk


New appetite for property, says JLL
8th May 2013

By James Graham - Deputy Editor, North West

CONFIDENCE is returning to the regional commercial property market and is stronger now than at any point since the financial crisis, according to the agent Jones Lang LaSalle.

Tim Luckman, head of Jones Lang LaSalle’s North West valuation advisory team, told an audience at the firm's spring briefing this morning that the market has passed its lowest point.

He said: “While the recovery is by no-means at full speed yet, the overall sentiment in the marketplace is more positive now than it has been for several years.

“The news I hear on a daily basis from the region’s property companies, private investors and developers is generally positive – occupier activity has improved, take-up is on the rise across all sectors and incentives are coming down.

“Investment sales for prime and good secondary assets are now typically subject to multiple bids, with premiums on some portfolio sales. Owner occupiers are returning, and my own team has valued more land in the last six months than at any time in the past five years; developers are finally dusting off their plans."

Mr Luckman was joined by Dan Burn from industrial and logistics, Chris Mulcahy from office agency and Simon Merry from investment, in addition to Jonathan Heptonstall from the retail investment team in London and Andrew Burrell, the firm's head of Europe, Middle East and Africa forecasting.

Mr Burrell sounded a note of caution. “While there is certainly enough evidence to suggest that we may have reached the bottom of the market, there is no doubt that things remain tough and a sustained recovery remains dependent on wider events in the fragile global economy. The UK has only narrowly avoided a triple-dip recession itself and growth remains anaemic.

"Any improvement in confidence must also be seen within the context of the past few years, in which we have faced one of the most difficult property markets in a generation."

[neil]

Peel plans 300,000 sq ft grade A offices
10th May 2013


PEEL Group has submitted plans for 300,000 sq ft of grade A offices and a 150-bed hotel close to the Trafford Centre.

It wants to develop the former Kratos site on Mercury Way, off Barton Dock Road.

In 2009 Trafford Council gave consent for a similar scheme without the hotel element.

According to a planning statement Peel has secured interest from an unnamed hotel operator which, "has given the redevelopment proposals fresh impetus".

"Peel consider that the inclusion of the hotel strengthens the proposals for the site, not only by securing an operator but also in enhancing the mix of uses and the contribution of the site to the overall vitality and economic health of the Trafford Centre Rectangle."

The statement added: "The proposals seek to promote a development which is hallmarked by high quality design and construction both in relation to the buildings and the surrounding public realm. The types of businesses seeking grade A office space, of which there is very little currently existing in Trafford, are very demanding in terms of the quality of the space, general environment and supporting facilities.

"To meet these expectations it is proposed that the buildings will be thoroughly modern in design and will complement and contrast with the more classical style of the nearby Trafford Centre and Barton Square developments. The aspiration is to set a benchmark for future development elsewhere in the Trafford Centre Rectangle."

[js1000]

Originally Posted by neil

Peel plans 300,000 sq ft grade A offices
10th May 2013


PEEL Group has submitted plans for 300,000 sq ft of grade A offices and a 150-bed hotel close to the Trafford Centre.

It wants to develop the former Kratos site on Mercury Way, off Barton Dock Road.

In 2009 Trafford Council gave consent for a similar scheme without the hotel element.

According to a planning statement Peel has secured interest from an unnamed hotel operator which, "has given the redevelopment proposals fresh impetus".

"Peel consider that the inclusion of the hotel strengthens the proposals for the site, not only by securing an operator but also in enhancing the mix of uses and the contribution of the site to the overall vitality and economic health of the Trafford Centre Rectangle."

The statement added: "The proposals seek to promote a development which is hallmarked by high quality design and construction both in relation to the buildings and the surrounding public realm. The types of businesses seeking grade A office space, of which there is very little currently existing in Trafford, are very demanding in terms of the quality of the space, general environment and supporting facilities.

"To meet these expectations it is proposed that the buildings will be thoroughly modern in design and will complement and contrast with the more classical style of the nearby Trafford Centre and Barton Square developments. The aspiration is to set a benchmark for future development elsewhere in the Trafford Centre Rectangle."

Wonderful Classical structure that Trafford Centre is! 16 years old - incredible and worth preserving

[VDB]

BDNW - I think this is a good thing to be honest, and it's good that the council have been able to specify which areas they would rather not be converted to residential apartments. It'll certainly mean a steep rise in the number of people living in the city centre; which surely can only be good?

Pickles protects Manchester from office-to-resi ruling

9 May 2013, 20:46




Two areas of Manchester city centre will be exempt from sweeping new permitted development rights that could trigger a wave of office-to-residential conversions.

Manchester City Council successfully argued for the business district stretching from Spinningfields to Piccadilly and for the Co-operative Group's emerging Noma development to be kept out of the new regime which comes into force on Thursday 30 May.

There will be 17 areas nationwide where the rules don't apply, mostly in London. Liverpool City Council was among local authorities that applied for, but failed to gain, exemption from the easy office-to-resi measures.
The new permitted development rights announced by Eric Pickles, Communities Secretary, on Thursday, will enable offices to be converted in to homes without planning permission.

Pickles described it as "an opportunity for office owners and developers to bring outdated and underused buildings back to life and create much needed new housing."

In yet another attempt to boost the high street, a recommendation in the Portas Review will be adopted - high street premises will be able to be used for new types of business without permission.

In rural settings, existing agricultural buildings of less than 500 sq m will be able to be take on new uses such as shops or offices. Existing agricultural buildings under 500 sq m can change to a number of other business uses. For buildings between 150 sq m and 500 sq m, prior approval will be required, to ensure that the change of use "does not create unacceptable impacts such as noise or transport problems."

The requirement for prior approval of siting and appearance of fixed broadband infrastructure will be relaxed for five years to encourage operators to invest in provision in rural areas.

New measures will also facilitate the conversion of existing office and hotel buildings among other types to become state-funded schools.

Buildings that are classed for use as retail, financial services, restaurants, pubs and hot food takeaways, offices, leisure and assembly uses can temporarily change to another use class. They can be used for retail, financial services, restaurants and cafes and offices for a single period of up to two years.

The Government will increase the thresholds for business change of use, increasing from 235 sq m to 500 sq m for change of use from offices and general industrial use to storage and distribution, and from general industrial and storage or distribution to offices. This will help provide vital flexibility to enable the quick responses necessary to support business growth.

Premises that are offices, hotels and assembly or leisure use classes are able to change use permanently to a state-funded school, subject to prior approval covering highways and transport impacts and noise.

A temporary permitted development right is being introduced which allows a building in any use class to be used as a state-funded school for one academic year to help deliver new schools and allow for minor associated physical development.

The secondary legislation amends the Town & Country Planning (General Permitted Development Order) 1995. The statutory instruments come into force on 30 May 2013.

There are areas in 17 local authorities in England consisting of individual buildings, roads or zones that are exempt from new rights to convert offices to homes, following careful assessment of all the cases submitted. They are in the City of London and the London boroughs of Camden, Islington, Hackney, Tower Hamlets, Southwark, Lambeth, Wandsworth, Westminster, Newham, and Kensington and Chelsea. Other areas are in the borough councils of Vale of the White Horse, Stevenage, Ashford (Kent), the district councils of Sevenoaks and East Hampshire, and Manchester City Council.

[neil]

Offers tabled for Bauhaus and 100 Barbirolli Sq
13th May 2013

TWO multi-million pound Manchester office deals are on the cards involving 100 Barbirolli Square and Bauhaus on Quay Street.

TheBusinessDesk.com understands offers have been accepted for both buildings from international investors.

Scottish Widows is selling 100 Barbirolli Square, home to Addleshaw Goddard, Ernst & Young and DLA, seven years after acquiring the 140,000 sq ft building for £70m.

Two years ago it bought the neighbouring 84,000 sq ft 101 Barbirolli Square from Hermes in a £30m deal. It is home to law firm DLA, which has 32,000 sq ft, and accountancy firm PwC, which occupies 52,000 sq ft.

The 60,000 sq ft Bauhaus block was developed by Ask and Crosby Homes as the second phase of Rossetti Place in 2005-06. Barton Arcade-owner Morgan Leahy acquired the building for £16m in 2005 which is now home to law firm Irwin Mitchell. At some point it was bought by London-based asset manager BlackRock which is selling the building.

Jones Lang LaSalle is the agent on both buildings. It confirmed Bauhaus was under offer but would not give any further detail on the identity of the buyer. There was no information on 100 Barbirolli Square.

[neil]

Manchester exempt from office to resi conversions
10th May 2013


MANCHESTER has won an exemption from government proposals to allow offices to be converted into flats without planning permission.

The government believes the move will increase housing supply and will introduce the change on May 30.

The council argued that the loss of office space in the city could restrict future economic growth in Manchester and the wider area.

There is around 15 million sq ft of office space in the city and the council says economic growth over the next 15 years is predicated on further large scale commercial development. It is one of 17 local authorities that has won an exemption including the City of London.

The government had said it would consider exemptions on two grounds - to prevent the loss of a nationally significant economic asset; and to prevent substantial local economic impacts that are not outweighed by the benefits of new homes.

[LNGCats]

Odd that Manc outs the only northern area exempt...

http://m.propertyweek.com/5054514.ar...lesite=enabled

[neil]

Manchester City Centre must be looked at as a National Asset

[jrb]

Hopefully that bodes well for future office take up. It's obvious the city council are protecting an asset. Hopefully there is a reason.

[VDB]

PW

Palatine moves to The Zenith

16 May 2013, 09:27




Palatine Private Equity has signed a 10 year lease on 2,500 sq ft of office accommodation at The Zenith building in Spring Gardens, Manchester.

The private equity house will move from Bruntwood's Lowry House to the Henderson Global Investors-owned Zenith in June.

Real estate firm OBI Property advised Palatine on the search and acquisition of the new office, along with the interior design and is also project managing the fit out works.

CBRE advised the landlord of The Zenith.

Gary Tipper, managing partner at Palatine Private Equity, said: "We wanted to remain in the heart of Manchester and The Zenith offers an ideal base to continue working with businesses in the region.

"The new building is very impressive and we are looking forward to growing the portfolio over the next decade here."

Will Lewis, director at OBI Property, said: "Palatine has always enjoyed being based in the traditional prime core and when the landlord confirmed they would sub-divide floors, it was a relatively easy to decision to select The Zenith.

"The new office will be a great base for Palatine to continue their success."
From offices in Manchester, London and Bristol, Palatine seeks to invest in established UK companies with enterprise values of up to £50m.

[Cherguevara]

Some of the areas in the south seem a bit odd. Even the ones in London strike me as being so. I can't imagine that 'areas in and around De Beauvoir' in Hackney are more of a national asset than any part of Birmingham or Leeds city centre. Or so many East Hampshire villages.

I expect that there's a lot of politicking that's gone into this.