2012 Global Market report - NAI Global

Manchester, England, United Kingdom
Contact
NAI Haywards
+44 20 7101 0200
Country Data
Area (Sq Mi)
GDP Growth
GDP 2011 (US$ B)
GDP/Capita (US$)
Inflation Rate
Unemployment Rate
Interest Rate
Population (Millions)
94,058
1.0%
$2,173.00
$34,800.00
5.0%
8.3%
0.5%
62.262
The City’s economy is now largely service based with financial
services, life sciences, cultural and media being the main
sectors. The wider urban area is the third largest in the UK
and is second in the UK for inward investment after London.
It is ranked second in the UK and 12th in Europe as the “best
place to do business”. Manchester was voted best UK city
outside London for availability of retail, leisure amenities and
a lively city environment. It is the third most visited UK city by
foreign visitors.
Annual take up of office space is likely to be below the long
term average of 850,000 SF per annum. There are several
large occupiers who are in negotiation for space (KPMG
55,000 SF; Pannone Solicitors 80,000 SF; Lloyds Banking
Group 180.000 SF). The Co-operative Group has launched
the first phase of its NOMA project; an £800 million project
set to transform 20 acres of Manchester City Center providing
4 million SF of office, retail, residential and leisure space. As
part of the project, the group will occupy a new 400,000 SF
HQ building. The BBC has moved 2,500 jobs to Media City,
Salford, a regeneration area to the west of the City Center,
including five London based departments as part of its cost
cutting program.
Although warehouse take up remained strong, activity levels
are well below those experienced in 2010. This fall in take up
has been mirrored by a fall in availability, particularly for larger
unit sizes where there is an acute shortage of supply. With no
speculative development taking place, this is forcing occupiers
to consider “design and build” solutions. During the year, there
were significant transactions, including a new 450,000 SF
distribution facility for Waitrose at Chorley. The investment
market remains strong underlined by the current availability
of a well let distribution unit in Trafford Park (360,000 SF,
£28.7 million, 6.5%).
The Arndale Center is the primary shopping center, anchored
by Next and BHS. Outside the Arndale Center retailing is
fragmented with various enclaves including the new
Spinningfields development. Outside the City Center, Trafford
Center rents have also remained around the £400 Zone A
mark with new arrivals including Banana Republic and
Hollister.
Manchester At A Glance
conversion 0.62 GbP = 1 us$ RENT/M 2 /MO US$ RENT/SF/YR
low High low High Vacancy
cItY center offIce
New Construction
Class A (Prime)
Class B (Secondary)
suburban offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
IndustrIal
GBP
N/A
25.00
N/A
N/A
N/A
N/A
N/A
GBP 29.00
N/A
N/A
N/A
N/A
N/A
$ 40.32
N/A
N/A
N/A
N/A
N/A
$ 46.77
N/A
N/A
N/A
N/A
N/A
15.50%
N/A
N/A
N/A
N/A
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
GBP
GBP
3.00
3.00
N/A
GBP
GBP
5.00
5.00
N/A
$
$
4.84
4.84
N/A
$
$
8.06
8.06
N/A
15.00%
15.00%
N/A
City Center
Neighborhood Service Centers
Community Power Center (Big Box)
Regional Shopping Centers/Malls
Solus Food Stores
N/A
N/A
N/A
N/A
N/A
GBP 230.00
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$ 370.97
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
deVeloPment land low/acre High/acre low/acre High/acre
Office in CBD
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
N/A N/A N/A N/A
N/A N/A N/A N/A
N/A N/A N/A N/A
N/A N/A N/A N/A
N/A N/A N/A N/A
N/A N/A N/A N/A
2012 Global Market Report n www.naiglobal.com 65