City centre residential activity at 5-year high
RESIDENTIAL development in Manchester is at its highest level in five years.
According to Deloitte Real Estate’s 2014 Crane Survey there are 1,426 units under construction in the city.
It said there are three new starts – phase two of Potato Wharf in Castlefield, Salford’s One Greengate and a refurb in Princess Street – and six schemes that are in their latter stages.
Deloitte said: “Despite the relative lack of newly started projects this year, the planned development pipeline within the regional centre is an encouraging indicator of future growth.”
The survey said there was 325,000 sq ft of office space under construction, altough much of that is the 270,000 sq ft One St Peter’s Square which is nearly complete.
The latest Manchester Office Agency Forum figures show that take-up stands at 968,338 sq ft, and is expected to exceed one million sq ft by the end of the year for the first time since 2010. Deloitte said there was around one million sq ft in the planning pipeline, including 1 Spinningfields, 2 St Peter’s Square and 24 Mount Street.
The report said: “Grade A availability is now just 283,000 sq ft down from a peak of 600,000 sq ft in 2009. Low levels
of supply combined with high levels of transaction activity during 2014 is producing demand for new space. This becomes even more pertinent when considering current high profile requirements from EY, Addleshaw Goddard, PWC, and DLA Piper – all of whom are on the hunt for at least 50,000 sq ft of office space within the city centre.”
A total of 13 major schemes have completed since last year’s survey, which delivered: 320,000 sq ft of offices across four buildings; 390,0000 sq ft of education and research facilities; a hotel; 212 apartments; 1,457 student beds; The refurbishment of the Central Library and Town Hall.
Michele Steel, head of Deloitte Real Estate North West, said: “The strong results of last year’s Crane Survey have paved the way for a new wave of development activity across the city centre this year.
“With investment activity at record levels, international investment firing into the local economy, and a clear vision to bring the key northern cities together into one economic powerhouse, 2014 has seen continued evidence of the strength of the Manchester market.”
