Avison Young in Manchester
Avison Young’s team has been operating in the North West since 2004 from its office in Central Manchester. The office has a mature multi‑service offer across Agency, Capital Markets, Building Consultancy, Project Management, Professional Services, Asset Management and Property Management.
The Greater Manchester area is the second most populous urban area of the UK with a population of approximately 2.6m which includes Manchester, Salford and several surrounding large towns. The city has internationally recognised strengths in finance, life sciences, engineering and the digital and creative sectors, according to Meetings Industry Association (MIA). The region also has a strong industrial and logistics market with approximately 60% of the UK’s population being based within a 2½ hour drive of the city, according to the National Census.
Manchester is the Centre of a thriving city region and is the largest and fastest growing economic area outside London with a gross value added of £56 Billion. The city has a highly skilled workforce with 7 Million people within an hour’s commute of the City Centre creating an ideal business location. Google, HSBC and the BBC are just a few of the large companies and corporations who have made their home in the city region.
The city is home to 80 of the FTSE 100 and 5 universities with a student population of over 110,000. Manchester is the only city in the UK to offer the next generation of broadband, putting it at the forefront of digital communication and is home to the biggest financial and professional services hub outside London, employing approximately 250,000 people.
Greater Manchester is one of the leading UK office markets. The City Centre has a total stock of over 20 Million sq ft with a healthy development pipeline. City Centre take up over the last few years has averaged around 1.3 Million sq ft and with take up to the end of Q3 2017 of 936,000 sq ft, the City Centre is on target to continue this high level of letting activity. Positive net stock absorption will be maintained in the City Centre market with new entrants concluding transactions over the following months. Growth in City Centre living has both removed tertiary buildings and sites from the office supply pipeline and provided positive impetus for occupiers seeking to employ a well-educated and readily available workforce.
The North West has the highest level of industrial stock in the UK with approximately 410 Million sq ft of accommodation and is one of the UK’s most successful and dynamic regions with a rising population and continued investments in infrastructure. Large projects such as Liverpool Two, the new deep water terminal at Liverpool dock, the Mersey gateway project between Runcorn and Widnes and the proposed new Terminal One at Manchester Airport will increase demand for the industrial market to serve these new gateways.
The availability of stock within the North West Region is at its lowest level ever at 6.9% leading to strong demand maintaining pressure for speculative development of prime sites and increases in rental levels.
Over the past two years, the North West Region has seen the strongest level of investment activity outside of London and the south of England. In Q2 2017, investment activity increased 5% to £659 Million, with over 40% of this investment activity being undertaken by overseas investors.
North West investment volumes are holding up well with new sectors including build to rent and hotels becoming more popular. The fundamentals for Manchester City Centre office developments remain strong and positive despite the increase in the development activity with positive net absorption during the course of 2016 / 2017. The industrial investment market is particularly active as a result of low levels of vacancy and upwards pressure on rental levels.