New record for office take-up in Manchester
Business is booming in Manchester, UK – and this is likely to continue having a significant impact on the city’s residential property market.
Figures released by advisers Colliers International show that 806,024 sq.ft. worth of office space was taken up in Manchester’s commercial property sector in the first half of 2019. This represents a 54% increase on the long-term average.
It means that office take up in Manchester city center is now at a five-year high.
Furthermore, it underlines the continued confidence in Manchester’s economy, with the city boasting one of the UK’s most active business and commercial sectors.
On September 4th 2019, designs were submitted for a major 20-acre new commercial development dubbed ‘Noma’ in Manchester city centre. The two office blocks will house 3,500 workers in a prime location in the city.
According to north-west commercial news publication The Business Desk, this scheme has been increased in size, compared to its original proposals, “due to soaring demand and the strength of Manchester’s booming economy”. It reports that an extra storey has been added to one of the buildings.
Elsewhere in the city, another new major commercial development – located adjacent to Select Property Group’s Embankment West residential neighbourhood – held a topping out ceremony on September 4th.
100 Embankment, the second commercial project in this area, has now reached its highest point. Construction on the £65 million, 166,000 sq.ft. development began 12 months ago and is scheduled for completion in June 2020. Developers propose to attract a number of high profile companies to the new offices once they are finished.
For residential property investors in Manchester, this confidence in the commercial sector should prove to be welcomed news.
At a time when the population of Manchester city centre is rising 17% faster than the UK average, more companies opening offices will inevitably drive employment growth in the region and increase this population further.
Many of these new workers will want to live in high-quality homes in the city centre. Close to their places of work, leisure hotspots and Manchester’s major transport hubs.
By 2022, residential housing delivery in Manchester will meet just 25% of annual demand. Further tenant numbers will only add to the strain the residential property sector is already feeling, with supply struggling to keep pace.
Source: Select Property Group