Property Focus: The Interview – Lee Charnley

In our series of interviews with top professionals from across the property sector, TheBusinessDesk catches up with Lee Charnley, director of Property Alliance Group.

What are your views of the current state of the commercial property and property development markets?

Without question we are in an extremely trying market and we all know that it’s going to be a slow and bumpy journey back to ‘normality’.

From a development perspective, it’s going to be a while and extremely difficult to get any kind of deal to sensibly stack up. Whilst occupiers are slowly and steadily coming back in to the market place, they are predominantly only after deals. The occupier lust for reduced rents and slashed freehold prices will only subside when the stock levels of the remaining quality product meaningfully reduces.

There is a difference of opinion with those professionals I speak with to know whether stock levels will increase or decrease from today, as no-one quite knows whether there is another wave of tenant defaults ahead.

When quality stock is becoming an objective problem for occupiers, D&B deals for non bespoke buildings will start to be more prevalent and at that stage, a few pioneering developers will start to think about speculative development.

Any new development will only be able to happen when bank liquidity has increased and the ‘new rules’ commercial lending are fully known.

It is extremely difficult to predict the short term future of the property markets, but what I am certain of is, only those developers who are creative and proactive will be capable of spearheading the next phase of new developments across the region, and only those property professionals who are up for the continued challenge ahead will be working on those developments.  

What key challenges and pieces of legislation do you think will most affect your sector over the coming months?

The property sector faces many challenges, but for me the natural and totally understandable inclination for caution, fear and then inaction is the biggest challenge for us all to overcome.

I’m not advocating the gun slinger attitudes that led us to this low place in our history, but the basic fundamentals of good property development moving forward should not be ignored by bankers, valuation surveyors, lawyers et al – if they are, the property sector (and economy at large) will spend far longer in recovery than is necessary.

Why do you think the North West is a good place to do business?

Having traveled a great deal, and being extremely biased, I believe the North West is one of the most varied areas that you can come across. The wonderful local accent variances we often encounter from town to town typify those other variances which make the region so diverse.

The broad variety of cross sector skills within the region is individually complemented by the positive attitude, strong work ethic, and common sense led approach of our its population. These combinations make it a great place to do business.

What is your favorite building in the North West and why?

I’ve always liked the Siemens building on Princess Parkway. When it was constructed in the early 1990s it was an extremely modern building of its day – it still is now.

It has visually and physically stood the test of time, unlike many of its contemporaries. In some ways it’s a shy building sitting back from Chester Road behind a thin layer of trees and across as unspectacular lawn, but it also has for me a great presence and place and is the visual symbol of entering Manchester when approaching from the south.

If you could improve anything in the region, what would it be?

From a land use perspective, I’d like the regional local authorities to adopt some truly commercial joined up thinking and action. I often find a lack of understanding from most local authorities of what is physically happening within their neighbours backyards.

The North West has to appeal to a global market to be able to thrive and move forward, so, in conjunction with the fundamental mix of local offerings, I’d like specialist non competing centres for industry, distribution, finance, creative and media spread across the region, which are truly capable of attracting international companies.

This, for me, would help magnify the regions capacity and its myriad of possibilities when trying to attract inward investment from overseas. 

What was your first job and how did you enter your current line of work?

I started my life as a trainee architectural technician. Having passed my technicians exams, I confidently asked for a long overdue pay rise and car otherwise “I would leave and fulfill a burning ambition to travel”.

What I had arrogantly forgotten was that it was 1991 and we were in the midst of a severe recession and job losses and not pay rises were the order of the day.

My then boss, Chris Wewer (now the High Sherriff of Greater Manchester) was kind enough to take a day to think about my ridiculous demands before telling me that I was “going backpacking”. That was perhaps the best decision ever made for me.

After spending twelve months touring Australia and South East Asia I had two choices: to be an architect or; to be someone who employed an architect. I decided that I wanted to be the latter and a degree in Land Economics at Sheffield Hallam University, a year as a property manager in Vancouver and three fantastic years working in the industrial department at Lambert Smith Hampton led me to work at Property Alliance Group where I have been for the past eleven years. 

What do you most enjoy about your job?

The total variety of opportunity, fused with a strong creative requirement to problem solving.

What barriers have you faced during your career and how have you overcome them?

I experienced the very significant loss of my father while at secondary school which with hindsight lead to a lack of personal direction and focus.

By the time I knew that I wanted to be involved in property of some kind, I was already academically behind my peers and had to take a more vocational and longer route to entering the property profession.

This longer route wasn’t necessarily a “barrier”, it was more of an inspiration to keep going despite knowing setbacks are bound to happen – a healthy and valuable education given current market conditions!

What is the best piece of advice you’ve ever been given?

“Never take no for an answer” and “to be strong you must never show your weaknesses”.

And the worst?

It’s okay to cheat.