Manchester is seemingly following in London's footsteps and seeing a boost in its commercial property sector.
Official figures have revealed that commercial take-up had seen a 61 per cent rise in the first quarter of the year, compared to the first three months of 2012. In total, 274,800 sq ft of space had been transacted across 64 deals. Such highlights included 63,000 sq ft at Sunlight House on Quay Street being occupied by Traveljigsaw and 22,000 sq ft letting to World Pay at 3 Hardman Square. The biggest investment that Manchester saw was a £142 million sale of Co-op’s One Angel Square to Chinese government-backed investors.
Foreign investment seems to be striking a chord in Manchester, with overseas money expected to rush into the city in the second half of 2013. This is especially the case for industrial property and offices in the city centre.
Dan Crossley, investment specialist at WHR, said: “We’re in a completely different world now, compared to the end of last year. Property companies and overseas investors see Manchester as a place to invest. Today, we are seeing probably ten-times the activity we were seeing this time in 2012.”
One big investment set to be finalised will be the sale of the Royal Exchange. Being handled by PRUPIM, this will be the second time the site has been sold since it was built in 1729. The 280,000 sq ft site is set to be sold for £40 million, but the arcade and theatre will not be part of the sale.
Analysts will be waiting with bated breath until the official second quarterly results are announced later this year. Only then will a clearer picture be painted about the future of the commercial property market in Manchester.