manchester offices briefing: ken bishop, jll
TRANSCRIPT
Manchester Development
Overview
10th November 2016
Place North West
Breakfast
Office Market in fine fettle despite…………
2
Source: JLL, Q3 2016
0
200
400
600
800
1,000
1,200
1,400
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
000s sq ft
Take-up 10-Yr Average
6686,172
Headline Transactions
• Swinton Insurance – 165,000 sq ft
• Freshfields – 81,300 sq ft
• Co-op Bank – 32,800 sq ft
• Squire Patten Boggs – 28,000 sq ft
• Kacoo Fashions – 25,650 sq ft
Plus 2 transactions in Solicitors hands totalling 100,000 sq ft
One New Bailey
Size: 125,000 sq ft
Amount let: 81,300 sq ft101 Embankment
Size: 165,027 sq ft
Amount let: 165,027 sq ft
XYZ
Size: 145,257 sq ft
Amount let: 145,257 sq ft
Developments Under Construction – PC 2016
Two St Peters Square
Size: 161,113 sq ft
Amount let: 121,500 sq ft
1 Spinningfields
Size: 260,000 sq ft
Amount let: 135,665 sq ft
No 8 First Street
Size: 143,610 sq ft
Amount let: 39,610 sq ft
Developments Under Construction – PC 2017
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Pre-Let Speculative
Development Pipeline 2008 – 2019
Why no completions in 2018?
• Funding, funding, funding
• 8 schemes - only one funded by the private sector
• Options – Local Authority underwrite; pre-let; forward funding
• Constrains expansion and success of the City
Development Pipeline- completion 2019?
100 EmbankmentTristan/Carillion Ask
160,000 sq ft
Brazennose House, Lincoln SquareM & G / CDP106,700 sq ft
24 Mount StreetFORE
80,000 sq ft
11 York StKier
80,000 sq ft
Two New Bailey Square
English Cities Fund
190,000 sq ft
2 & 3 Angel Square
Hermes/Co-operative Group
2 - 145,224 sq ft
3 – 260,907 sq ft
New Victoria
Muse Developments
103,377 sq ft
Development Pipeline
Site Owner:
London & Continental Railways/ Manchester City Council/TFGM
U & I appointed as Preferred Developer
Scheme:
A comprehensive redevelopment of 24 acres next to Piccadilly Station. The cost of the development estimated at circa £500m.
The master plan comprises:
Commercial offices – 700,000 sq ft;
1,330 new homes (2 & 3 bed town houses and 1 & 2 bed residential apartments;
350 bed hotel;
Multi-storey car park; and
Six acre urban park
•
Mayfield Station
Developer:
Allied London
Scheme:
Mixed use scheme on a 5.3 acre site of the formerITV Granada Studios.
Planning
The St John’s Strategic Regeneration Frameworkformally endorsed by MCC in February 2015identifies a scheme with the potential todeliver:
2,500-3,000 townhouses, apartments, live-work units and high-riseliving;
500-600,000 sq ft workspace;
80,000 sq ft of this a refurbishment of the Bonded Warehouse;
300-400,000 sq ft of new leisure;
Two new hotels; and
2-3 dedicated arts and culture buildings including the Factory
St Johns
Union
Bruntwood
66,249 sq ft
PC Q2 2017
Dalton Place
Tesco Pension Fund
65,724sq ft
PC Q3 2017
11 Portland St
Aviva
103,377 sq ft
PC Q1 2017
Will refurbishments fill the gap in supply?
Arkwright House
Catalyst Capital
105,000 sq ft
PC Q3 2017
Heron House
MCC/Bruntwood
109,000 sq ft
PC ??
Hanover, Noma
Hermes/Co-op
121,300 sq ft
PC Q3 2018
Corner Block
Credit Suisse
52, 000 sq ft
PC Q2 2017
100 + 101 Barbirolli Square
AEW + Moorfield/Oaktree
84,044 sq ft & 134,850 sq ft
PC 2018?
Depends on the building
Buy to let(2,387)
PRS(2,416)
Renaker(2,629)
OwnerOccupier
(686)
8,118 apartments
Residential reaching the heights
Pipeline 24,000 apartments
Thoughts on the Future?
• The b****y B word and Trump!!
• Light at the end of the tunnel for major development sites
• Where will the City Centre expand?
• Impact of GPU requirement
• The new paradigm with Mayor Burnham / Anstey and no SHB
• Capitalising on the growing talent pool
Thank you
Ken BishopDevelopment ConsultantManchester+44 (0)20 161 238 [email protected]
COPYRIGHT © JONES LANG LASALLE IP, INC. 2015