Manchester Offices

[mikeboss]

sometimes its down to the amount of office space these buildings have, say a larger company i would think would rarther move into one large development than lots of small ones.

[andysimo123]

Originally Posted by Bluegate74

I dont know where these figures come from about office take up/required capacity etc. etc. etc. in this city. Peter House on Oxford Road. has remained half empty since it was refurbished god knows how many yrs. ago, Tootal House further down Oxford Rd. likewise is partly empty and the two 'HUGE' towers planned for Spinningfields have no tennants signed up yet.

Its OK getting these schemes built 'expecting' there to be take up but clearly take up cannot be that strong when there i so much empty office space in the city centre already. Look around you and you can see for lease/rent signs everywhere.

They'll get built because even if they stay empty for two years the company who built it still has the building and more than likely its price will have gone up afew million anyway. Also we worked out last year that over the next 5-10 years the city will need about an extra 5 million sqaure meters of office
space. It might have changed now but once the BBC come in and the metrolink gets slower larger I don't think we'll set much of that office space hanging around for very long.

[URBANISER]

For let signs are evident in all cities and towns. I think most of what is built and planned at Spinningfields Bluegate is already occupied or pre let.

[SleepyOne]

http://www.knightfrank.com/ResearchR...ase2/10994.pdf

Manchester's office market has performed consistently well in recent years and has certainly been outperforming most "regional" rivals in terms of take up with perhaps the exception of Bristol and Edinburgh.

I personally don't think there will be a big oversupply problem despite the slew of very large schemes under construction right now.

[jrb]

From todays MEN.

Slightly dissapointing. I'm sure the original plan for the vacant site was a midrise residential tower?

Conversion at Piccadilly




MCR: Former Barclays Bank building

A NINE-STOREY office block is set to be built at Manchester's Piccadilly. MCR Property, the business controlled by student housing magnate Aneel Mussarat, wants to build on the site of Barclays on London Road.

The bank, which is a listed building, will be converted to offices if approval is given, and an adjoining site will also be developed as offices. MCR Property says the speculative development is expected to start on site by 2009.

The scheme is being designed by Manchester-based Reid Architects, the practice behind the award-winning refurbishment of the former Norwich Union building at King Street, now called The Pinnacle.

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The ground floor of the old bank will be converted for leisure use, probably a bar or pub.

MCR Property acquired the 11,500 sq ft building, next to the Malmaison Hotel, for £2.5m last summer.

Manchester planners are expected to receive an application for the new development this week. Town hall bosses are keen to see more office and commercial development in an area which was in danger of being dominated by apartments.

Speculative

Gary Thompson, commercial asset manager at MCR Property, said: "This will be a speculative development, because the Piccadilly area is the up-and-coming location for offices and because we're confident of the market there."

Piccadilly is rapidly becoming the new focus for the city's fast-growing office market.

Last month, Leeds-based developer Town Centre Securities said a 350,000sq ft scheme at Piccadilly Basin was to go ahead.

Work is already underway on the conversion of the historic Carvers Warehouse in a 24,000 sq ft office scheme. Work is also in progress creating a headquarters for BDP Architects, with completion anticipated in early 2008.

Nearby, London-based developer Argent is at work on the 200,000 sq ft speculative development of No 3, Piccadilly Place, London Road.

A 55,000 sq ft building next door at No 2 has been let to Greater Manchester Passenger Transport Executive.

Property industry leaders say Piccadilly will be the next major business district in the city, once the Spinningfield development is completed.

After Piccadilly, attention will focus on creating a new business district around Victoria station and at the Salford Greengates site.

[Potato Man]

Originally Posted by jrb

From todays MEN.

Slightly dissapointing. I'm sure the original plan for the vacant site was a midrise residential tower?

I think a building of between 14 and 20 storeys had been mentioned for the site previously.

A few details on the developers website - the same guys who are linked to a residential tower on the HArry Ramsdens site.

http://www.mcrproperty.com/

[jrb]

Originally Posted by Potato Man

I think a building of between 14 and 20 storeys had been mentioned for the site previously.

A few details on the developers website - the same guys who are linked to a residential tower on the HArry Ramsdens site.

http://www.mcrproperty.com/

That's the one Pots. Many thanks.

[jrb]

South Manchester office market set for boost

THE south Manchester office market will be back in business in 2007, say property experts.

Pundits predict that this year will see the area climb back off the canvas after five years of gloom.

The area, including Stockport, Wilmslow and Altrincham, plunged in popularity following the collapse of the dotcom boom and the decline in American investment following 9/11.

The first evidence of a recovery came last year, but the latest deals show the area is now beginning to appeal to a wide range of occupiers once again.

Now AMEC Developments has announced two new deals at the 70-acre Cheadle Royal business park.

Electronics firm Balluff is taking 11,500 sq ft, and event specialists Fresh is taking 7,550 sq ft.

Both signings are in the second phase of the Oakfield development, intended to appeal to smaller companies. It is now 50 per cent let, only two months after the scheme was launched. The first phase was successful, with four of the five buildings now sold.

AMEC's Richard Jones commented: "Both phase one and phase two at Oakfield have attracted a high level of interest, and we are delighted by their success and looking forward to welcoming the new occupiers to Cheadle Royal.

"The remaining two buildings are also generating a great deal of interest, confirming that Oakfield is a superb product, providing a high-quality working environment in an excellent location."

[jrb]

**

[highriser]

So 4HS is fully let to HSBC and Grant Thornton

How much space as Halliwells took at 3HS ?

And how much space is the in 3 Hardman St ? i think they will fill this building in the next 2 years while its under construction.

I think it will be at least anther year before another office development starts ,,unles they know something we dont .

[jrb]

Paul Butler Associates.

Wonder if this is still going ahead?





No 1 Fountain Street, Manchester
Client: Capital & Counties plc

No. 1 Fountain Street, the old Lewis's department store building in Manchester City Centre, houses TK Maxx on the lower ground and Primark on the ground and first floors. The upper floors are vacant.

The challenge here was to find a use for the upper floors that was compatible with the existing retail use; and which made economic and planning sense. B1 office use fitted this bill, but there were several planning problems which Paul Butler Associates were commissioned to resolve: how to give this significant office space a proper front door (answer: take a sensitive slice out of the façade on Fountain Street: controversial, but worth it!); and how to cope with the historic interior yet provide efficient office space (answer: again, be sensitive about domes and ballrooms; and realistic about planning gain issues).

Work on this conversion, which will bring much needed secondary office space into the heart of the city, is expected to start soon

[jrb]

One steps forward, two step back
13.07.07

Unfazed by the withdrawal of GE Capital and Barclaycard, Bruntwood is speculatively developing One New York Street in Manchester.

It was a mixed first half to 2007 for Manchester city centre offices. Agents reported plenty of deals, even if the headlines did their best to suggest otherwise. GE Capital pulled out of buying Piccadilly Place, Barclaycard withdrew from an 80,000 sq ft prelet at Allied London’s Spinningfields and new buildings such as CTP’s Aurora have failed to attract large lettings.

However, developers are still trying to snap up any and all opportunities and say the market’s growth prospects are strong.

Peter Crowther, development director of office investor and developer Bruntwood, which is building its first entirely new office property, One New York Street, says: ‘There are still occupiers out there and people taking space.

‘What is probably missing is a big headline letting. We have had a positive year so far with the Square One being let to Network Rail and Lowry House is two-thirds prelet.’

Bruntwood has a 4% vacancy level in the city centre, which Crowther says is consistent with the last two years.

He adds: ‘The market is split into two camps. Those looking for large amounts of space sign longer leases and get big headline concessions, while the other camp is in the market for less space but of the same high quality.’

New york story

Bruntwood will be pitching One New York Street in the high £20s/sq ft, in line with today’s city centre rents. The company plans two more office schemes in Manchester: a 100,000 sq ft property off Deansgate, close to the new Civil Justice Centre, and a 50,000 sq ft building on Fountain Street.

Crowther adds: ‘We are doing the cost analysis on them before starting in earnest, but they will be built speculatively.’

Although Langtree Group secured a juicy prelet of half the space at its 100,000 sq ft Forty Springardens to HBOS last summer, it has signed no further lettings at the building, which is due for completion at the end of August.

Langtree Group development director Martin Mellor says: ‘We’re not panicking far from it. A number of occupiers are keen on the building.’

Langtree has joined with neighbouring landlords Bill Wrather and Bruntwood to spend a combined £1m on public realm improvements to their stretch of Spring Gardens between King Street and Market Street. These works will be completed by the end of the year and the trio hope this will help to secure lettings.

Erinaceous director and head of office agency Phil Meakin, the letting agent on Forty Springardens, is even more bullish than Mellor.

‘We are confident that the building will be fully let by the time completion occurs towards the end of the summer,’ he says.

City centre take-up in the first half of 2007 was slightly more than 400,000 sq ft, a figure typical of the five-year trend, according to Colliers CRE.

This healthy state is encouraging new names to enter the development market, among them HBG, whose development manager Neil Mort is keen to get the company’s first Manchester city centre office development started. He is negotiating to buy a site and hopes to complete a scheme by 2009 or 2010.

‘There is the possibility of oversupply this time next year, but a year or two later there will not be a great deal of space coming through,’ says Mort. ‘I think there may be a shortage and we see that as a definite window of opportunity for bringing space forward.’

Property Alliance Group is one developer that has secured a site and planning permission for new offices, in the form of the 75,000 sq ft, 18-storey Axis tower on the canal next to the Manchester Central convention complex.

“what is probably missing is a big headline letting"

Peter Crowther,Bruntwood

Property Alliance director Dominic Pozzoni says: ‘We are building in a different location with smaller floorplates of 4,500 sq ft, which will provide occupiers with something new. Companies are already talking to us about the space because we are bringing something fresh to the market.’

Agents agree that the foundations of the Manchester office market are as strong as ever and any blips making the news are symptomatic of world economic trends, rather than the local market getting jittery.

‘At the start of 2007 developers had committed to build 1m sq ft of new office space by the end of 2008,’ says Cushman & Wakefield partner Tony Bray. ‘At least 30% of this already has lease terms agreed or is under offer, which highlights the strength of Manchester’s office market. Only poorer-quality stock will suffer.’

No reflection

Bray adds: ‘GE Capital’s and Barclaycard’s decisions to pull out of Manchester do not reflect the city’s performance and are not a sign that difficult times are ahead. Their move away from Manchester was a result of a global strategic review and should not be considered as an indicative change in the market.

‘Various global occupiers have indicated that Manchester is still on their shortlist as a potential relocation destination.’

WHR partner Mike Hawkins adds: ‘Aurora’s failure does not reflect the state of Manchester’s occupational market. It is a reflection of the scheme’s design, massing and configuration.

When there is choice, educated occupiers gravitate to quality.’

Meanwhile, Barclaycard’s decision to abandon space it prelet at Spinningfields but never occupied which will now be partially sublet to Regus is bemusing.

Hawkins says: ‘At a time when every other bank is relocating their back-up and core functions to the UK and with new financial institutions arriving in Manchester on a monthly basis, the decision is perplexing –

a lone strategy. However, the decision is positive for Manchester as it frees up much-needed labour in an expanding economy. I look forward to a revision of this strategy should Barclay’s merger with ABN Amro go through.’

Hawkins adds: ‘GE Capital didn’t “pull out” of Manchester. It reacted to a European directive from the US and withdrew from five sites across Europe. GE Capital was replaced overnight by two alternative purchasers: MCR and Carlyle, reflecting the quality of the development and depth of unsatisfied occupational demand.’

While the city awaits another large financial or professional services prelet, rumours are mounting that Spinningfields will not have to wait too long to find an occupier.

No names have emerged but agents are again talking up the scheme in anticipation of a deal.

CB Richard Ellis’s office agency team director, John Ogden, says: ‘Piccadilly is still an emerging location and has had some significant commercial success. However, for me, Spinningfields is the preferred business location.

‘It is the one destination in the north-west with world-class buildings and a world-class business environment. It is the first time that a development of the calibre usually only seen in London has been found in Manchester.

‘As a result, when competing head to head with Piccadilly for large corporations and the indigenous markets of accountants, lawyers and the like, Spinningfields will often be the obvious choice.’

Those determined to call time on Manchester’s boom had better be careful, given this high level of development activity and occupier interest.

[SleepyOne]

Can we remove the "UK comparisons" from the thread title or merge it with the Economy thread? Im not sure its necessary.

[jrb]

Originally Posted by SleepyOne

Can we remove the "UK comparisons" from the thread title or merge it with the Economy thread? Im not sure its necessary.

Manchester Offices is fine. I'd prefer to keep this thread seperate from the Economy thread. I'll PM b4mmy and ask him to change the title.

[Manc Guy]

How about 'Commercial Manchester'?

Perfect! I'm great aren't I.

[jrb]

Originally Posted by Manc Guy

How about 'Commercial Manchester'?

Perfect! I'm great aren't I.

I don't mind. I'm not bothered unless it's merged with another thread. Then I'll spit my dummy out big time!

[jrb]

Thanks B4mmy.

Bruntwood magic works again.

Network Rail moves into old depot
David Thame
24/ 7/2007

NETWORK RAIL has signed up for a 132,000 sq ft office block overlooking Piccadilly Station.

In a deal with Manchester-based property empire Bruntwood, Network Rail is to take the entire Square One office block. The building was once a parcels depot.

Network Rail had gradually increased its requirement from the initial 66,000 sq ft office space. Solicitors were working on the smaller deal when Network Rail decided that it was right for them to take all of the remaining space at the building on a 15-year lease.

Bruntwood's development director, Peter Crowther, said: "Commercially, this is great news for everyone involved, but we understand the deal has a much wider impact.

Derelict

"The building stood derelict and disused for over 10 years, and the regeneration catalysed by our work, alongside the 800 Network Rail staff commuting to the area, will be instrumental in helping improve a part of town that has suffered serious under-investment."

Anthony Burgess, Network Rail's corporate office manager, said: "Bruntwood's commitment to delivering quality products on time was key, and we're now delighted to be consolidating our Manchester operations at Square One, as well as relocating and recruiting up to 800 staff.

"For Network Rail employees, the quality of office accommodation, extensive parking and location were perfect, especially when considering its proximity to the station and the new bridge link Bruntwood have created for us.

"The 33,000 sq ft floor plates were also key in our decision making, with nothing else in the local market coming close."

Square One was bought by Bruntwood in 2002. Since then the firm has spent more than £11m refurbishing the former parcels depot.

King Sturge acted on behalf of Network Rail, with DTZ and LSH acting on behalf of Bruntwood.

[SleepyOne]

You might as well stick this article in here as well.

Sainsbury's HR hub set for Arndale
Kevin Feddy
25/ 7/2007

TAKEOVER target Sainsbury's is to spend £12m on a human resources hub in Manchester for its 147,000 store staff, the supermarket giant announced today.

Its investment at the Arndale Tower will create 250 jobs over the next two years.

Sainsbury's, a £10.4bn bid target for Delta Two, an investment fund backed by the royal family of Qatar, currently operates all retail HR functions within its 780 stores.

It says the new centre will free its retail managers from administrative tasks, enabling them to focus more on customer service, leadership and training.

The chain said the scheme would go ahead regardless of whether Delta Two acquires the business. It has offered 600p a share.

Sainsbury's says it will become the first retailer in the country to establish a `human resources shared services' (HRSS) operation, although other companies such as BUPA, HSBC and IBM have already done so.

Efficiency

Imelda Walsh, Sainsbury's HR director, said: "HRSS will increase efficiency, simplify processes and eliminate duplication. Most importantly, it will provide first-class service for our colleagues and allow store and personnel managers to dedicate more of their time to train and develop colleagues, which will ultimately improve customer service."

Manchester beat other cities to be chosen for the centre, which is to open in October and be fully operational by 2009.

Manchester's inward investment agency, MIDAS, worked closely with Sainsbury's on the project. Chief executive Colin Sinclair said today: "Sainsbury's will make a wonderful addition to the growing shared services sector in the region."

Sainsbury's will join other blue-chip companies with this type of centre in Manchester, such as the Royal Bank of Scotland, whose HR hub in Spinningfields employs more than 400 people. Others with a similar presence include AstraZeneca and TetraPak.

Delta Two says Asda veteran Tony Campbell will become chairman of the chain if its 600p-a-share offer succeeds.

[flange]

MWB to open four new centres
10:23 | 14.08.07

Serviced office provider MWB Business Exchange has announced it will open four new centres.

By Anna Hodgekiss

The AIM-listed company has signed four low-risk operating and management agreements (OMA) to open centres in Newcastle, Manchester and two in the City of London.

The move is part of MWB’s strategy to expand its premium-branded offices into regional market and its low cost alternative, City Executive Centres, into the central London market. It takes the number of Business Exchange centres to 58.

In Newcastle, Business Exchange has signed a 10-year OMA on a 31,000 sq ft building that forms part of a newly developed business park by Grantax Developments.

In Manchester, the company has signed a 12-year OMA on 22,000 sq ft of space at 61-67 King Street owned by AWG Property.

In the City of London, Business Exchange has opened two new centres under its City Executive Centres brand following the signing of a 10-year OMA with the Merchant Taylors Company, owners of two buildings on Threadneedle Street, EC2, and Finch Lane, EC3. The buildings provide a further 18,000 sq ft of space.

John Spencer, chief executive of Business Exchange, said: ‘These new centres reflect our strategy of expanding through low-risk OMAs where there is no liability for either Capex or long term conventional lease liabilities.

‘Also, in the case of Newcastle and Manchester, it enables us to expand into two key regional markets, which has been a priority for some time. The new City centres allow us to offer a lower cost alternative to the more traditional five-star centre through our CEC brand.’

http://www.propertyweek.com/story.as...rycode=3093350

[flange]

Walls Group buys Scottish House - Times
08:45 | 17.08.07

Dublin-based property company Walls Group has agreed to buy London Scottish House, London Scottish Bank’s head office in Manchester, for £20m.

http://www.propertyweek.com/story.as...rycode=3093492