Exchange Quay Deal Will Provide Commercial Property Opportunities Outside City Centre

Demand for office space in North West continues to increase, according to two recent reports.

Commercial property agent, Lambert Smith Hampton said that office take up in Manchester city centre was at a three year high and up 77% on the previous quarter.

According to it Manchester Office Pulse report, 655,108 sq ft. of office space was let in the first three quarters of 2013.

These findings are reflected in a recent study of the local property market by Jones Lang Lasalle. Their recent report pointed to a significant increase in the first nine months of 2013 compared to 2012.

Mark Bamber, associate director of Office Agency at LSH Manchester, said: “The mood in the marketplace is certainly more positive, and the figures clearly indicate an upward trajectory. While we may not have returned to pre-recession levels, consistent recovery is much more sustainable than the boom of 2007.
 
“We expect to see increased activity in the final quarter of this year, with a number of active requirements from large corporates in the market, which for the last few years have been absent. There is no reason why this growth trend should not continue well into 2014 and beyond.”

Commenting on his firm’s report, Tim Luckman, director at Jones Lang LaSalle, said: “The improvement in the market, following growing demand for well-located and well-maintained stock over the last nine months, has been encouraging and we’re looking forward to a strong start to 2014.

“Major UK banks are now returning to Manchester to fund big ticket deals, adding further weight to the view that the city is now fully in recovery mode."

The two reports follows news that several high profile organisations are looking for new premises within Manchester.

It also coincides with a number of announcements concerning high profile office developments. Allied London, for example, recently unveiled plans for a landmark office development at Manchester’s Spinningfields. The 19 storey building will incorporate the existing Quay House and include 260,000 sq ft, of office space.

This week it was also announced that Exchange Quay in Salford Quays had been sold to a US investor. News of the transaction was accompanied by reports that the new landlord was planning a £10m refurbishment of the 433,000 sq ft site.

Expert Opinion

Irwin Mitchell’s real estate team is certainly seeing an increase in demand from clients who are looking to either move into Manchester, or require larger premises. We are encouraged by what we are seeing in the market and look forward to what should be a strong 2014 as the economic recovery takes hold. <br/> <br/>“In addition to the city centre, we think there will be other hot spots. Areas around Salford Quays, in particular Exchange Quay, will I expect be in high demand and provide an attractive alternative for some businesses that are looking for good quality commercial space.” <br/> Roy Beckett - Partner