Manchester’s Top Future Relocations

Lambert Smith Hampton has just released its Manchester office market report for Q2 2017. City centre office take-up for reached 284,497 sq ft across 68 transactions, a 23.3% increase on the same quarter in 2016. The cumulative 492,730 sq ft for the first half of 2017 is an increase of 14.6% on 2016.

The latest big relocations, movers and inward investments included: co-working giant We Work taking 55,802 sq ft offices at No.1 Spinningfields. Weightmans took 17,949 sq ft at the same building. EY is taking 40,000 sq ft at 2 St Peters Square; Car Finance 247 is relocating to 40,000 sq ft at Universal Building, Devonshire Street North; Distrelec is taking 17,000 sq ft at 2 St Peter’s Square, while Vodafone signed for 33,000 sq ft at Atlantic House.  Lookers acquired the 21,000 sq ft Aspect House in Altrincham,  21,200 sq ft was let at Regent Place, Salford to Convergys and Kaplan Financial also agreed a 10,000 sq ft move. Deals under 3,000 sq ft still accounted for 40% of take up

LSH secured the largest office deal this year outside of the city centre by acquiring 47,149 sq ft at 106 Dalton Avenue at Patrizia UK’s Birchwood Park, Warrington for Cavendish Nuclear. Business Services, consumer services and leisure and banking and finance have been the strongest sectors for take-up in the first half of the year. These three sectors accounted for 34%, 20% and 18% of take-up respectively

Metropolis is monitoring around 50 current office requirements in Manchester and around 60 ‘potential movers’, that is companies approaching lease expiries or with expansion plans, which have not decided whether to move yet.

Looking ahead, Manchester is expected to see faster office based employment growth over the next five years than Greater London and all of the major UK regional cities. Office based employment is
expected to grow by 6% over the next five years, significantly above the UK average of 3.5%.

Central London Lettings – June 2017

Central London office lettings in June 2017 bounced back just over 1.75m sq ft of deals from 108 mid-large size transactions (5,000 sq ft+) during the month.

The June figure represents a near tripling of the 600,000 sq ft sq ft of lettings in May. It brings the Q2 2017 central London lettings to a very respectable 3.1m sq ft and comfortably above the 2.4m sq ft in Q1.

June was characterised by 14 office deals over 20,000 sq ft, which included WeWork’s 283,000 sq ft pre-let of the under construction Southbank Place building, SE1: Framstore took 93,000 sq ft at 28 Chancery Lane, WC2; Industrial Light and Magic took 47,000 sq ft at Lacon House, Theobalds Road, WC1 and Hermes taking 46,000 sq ft at 150 Cheapside in EC2.

Business Services topped the table of lettings by sector, underpinned by WeWork deals, this was followed by media and financial services with large deals involving Industrial Light and Hermes. IT services also performed well, helped by the lettings to Misys and Reply. Office deals ‘under offer’ in central London held steady at 3.5m sq ft and volumes are healthy in nearly all sub-markets.

By area, the City accounted for 32pc of the office floorspace let in June at 566,000 sq ft. The West End saw 315,000 sq ft of take-up. Midtown contributed 400,000 sq ft of lettings, which was equalled by Southbank. Current London office demand is calculated to be around 3.3m sq ft in the City and 3m sq ft in the West End.

The volume of grade A (newly built or refurbished office space) let during the month reached 840,000 sq ft (48% of the monthly total), as transactions for new space resumed their recent strong showing.

Cityoffices and Metropolis are releasing its twice yearly Skyline report on the London office construction market. The summer report features analysis of the 100 schemes under construction and the trends for the next wave of schemes. Details on Cityoffices from Andy King at andy@metroinfo.co.uk

Birmingham Upswing

A recent report by specialist Birmingham consultant KWB, reveals that the Birmingham city centre office market recovered in the first quarter of 2017 back to normal Q1 levels.

Office space transactions in the first quarter of 2017 totalling 139,000 sq ft – more than 30,000 sq ft over total transactions in each of the third and final quarters of 2016.  The largest deal of the quarter was by Arcadis’ signing for 22,953 sq ft at Cornerblock which is currently being refurbished, followed by iHub’s 18,378 sq ft new base in Colmore Gate. Recruitment specialist SThree Group was also the first tenant to sign 10,035 sq ft at the newly refurbished 10 Temple Street, on the 4th and 5th floors on a 10-year lease.

KWB say that the first quarter of 2017 was very much on a par with that of 2015. Looking ahead, KWB say that the rest of 2017 looks set fair, with the highest level of office development underway in Birmingham city centre for 15 years (1.4 million sq ft), a good supply of top quality Grade ‘A’ space is coming on stream and should trigger some significant office lettings in the coming months. Schemes include 55 Colmore Row
(160,000 sq ft), Corner Block (112,000 sq ft) and the Lewis Building (110,000 sq ft). The much reported HMRC requirement, which has shortlisted Three Snowhill, Arena Central and Post & Mail building, will see a letting of 200,000-300,000 sq ft and KWB also expect the HS2 halo effect to strengthen the Birmingham city centre office market.

Metropolis is currently tracking over 30 medium and large office requirements in Birmingham. Looking ahead, HS2 will have a major pull in 2017. The city has already seen Laing O’Rourke take 11,000 sq ft at 1 Victoria Square in 2016 and engineering firms and consultants are likely  to be a big sector going for office moves this year. In addition, there are nearly 40 tenants which are approaching decisions on lease or office consolidation plans over the next eighteen months.

 

Corporate Fit-Out Winners 2012-2016

 

 

 

 

 

 

 

 

London Top 10’s

The Corporate Fit Out Winners 2012-2016

Metropolis Property Research has just released its latest report for the period 2012-2016 on the central London office fit-out market.

The report provides Top 10 Rankings for those firms involved in ‘CAT B’ projects for corporate occupiers taking new space for interior design, project management, fit-out ‘build’, and agents advising tenants.

 

The No 1 TOP 10 firms are:

No 1 Interior Architect  – TP Bennett

TP Bennett has been ranked as London’s No 1 interior architect with 4.7m sq ft of interior design projects for corporate occupiers taking new space 2012-2016.  This is 29% market share amongst the named TOP 10 firms.

 

No 1 Fit Out Contractor – ISG

ISG has been ranked as London’s No 1 fit out contractor with 5.0m sq ft of fit-out projects for corporate occupiers taking new space in 2012-2016.  This is 33% market share amongst the named TOP 10 firms.

 

No 1 Interior Project Manager – CBRE

CBRE has been ranked as London’s No 1 project manager on interior fit out projects with 3.5m sq ft of projects for corporate occupiers taking new space 2012-2016.  This is 24% market share amongst the named TOP 10 firms.

 

No 1 Tenants Agent – CBRE

CBRE has been ranked as London’s No 1 tenant agent with 6.2m sq ft of occupier deals done on new office space 2012-2016.  This is 30% market share amongst the named TOP 10 firms.

 

 

Editorial Notes

In the five-years covered by the research (2012-2016) a total of 57.3m sq ft of new office space has been let in central London. The report has looked at deals of 2,322 sq m (25,000 sq ft) and over – which are the focus of the analysis – and amount to 30.3m sq ft of office space fitted out in 433 projects.

The report ‘London Top 10’s – The Corporate Fit Out Winners 2012-2016’ is available from Metropolis Property Research.   For details please contact simon@metroinfo.co.uk

 

About Metropolis Property Research Ltd

Metropolis Property Research is an independent research and information company established in 1998.   The company carries out research into the London and UK office markets and corporate relocation leads.

Metropolis Website and Blog – http://www.metropolisleads.uk

 

Copyright Metropolis Property Research Ltd 2017

November 2016 Central London Lettings

Central London office lettings in November 2016 recorded nearly 1,050,000 sq ft of deals from 45 mid-large size transactions (5,000 sq ft+) during the month.

The November figure represents a rise of 17% from the 900,000 sq ft total in October and a rise in the number of office deals over the month.

November was characterised by 10 office deals over 20,000 sq ft, which included Freshfield’s 300,000 sq ft pre-let at 100 Bishopsgate, EC2; Fidelity took 105,000 sq ft at 4 Cannon Street, EC4 and WeWork took 72,000 sq ft at The South Bank Tower, SE1.

Professional services topped the table of lettings by sector, underpinned by the Freshfields deal, along with big lettings to Olswang and Nabarro, followed by the financial sector, boosted by deals to Fidelity and EQT. Business services also performed well helped by more lettings to WeWork. Office deals under offer in central London fell slightlt to 2.5m sq ft after deals in the City and one in Southbank.

By area, the City accounted for only 78pc of the office floorspace let in November – a big increase on the 18pc in October. The West End saw 70,000 sq ft of take-up. Midtown contributed 20,000 sq ft of transactions, but Southbank again performed well with 70,000. Current London office demand is calculated to be around 4m sq ft in the City and 3m sq ft in the West End.

The volume of grade A (newly built or refurbished office space) let during the month reached a remarkable 800,000 sq ft (76% of the total), as transactions for new space kept momentum.

Take-up in central London for January to November 2016 has so far reached 9.4m sq ft with December to come. With two or three large lettings pencilled in the yearly total could touch 11m sq ft.

Cityoffices wishes all its readers a Merry Christmas and prosperous New Year.

Central London Office Lettings – September 2016

Central London office lettings in September 2016 recorded nearly 720,000 ft of deals from 50 mid-large size transactions (5,000 sq ft+) during the month. The September figure represents a rise of 23% from the 580,000 sq ft total in August and a rise in the number of deals over the month. However the Q3 London take-up figure of just over 2.1m sq ft was disappointing.

September was characterised by 8 office deals over 20,000 sq ft, including WeWork at Aldwych House WC2; Havas at Alfred Place, WC1; Government Digital Service at the Whitechapel Building, E1 and DNV GL Group at Southbank Tower, SE1.

Professional services topped the table of lettings by sector, helped by the Havas deal, followed by media sector, boosted by deals to Time Inc and Audio Networks.  Business services also performed well. Office deals under offer in central London remain around 2.9m sq ft and include two large pending deals in Midtown. Enquiry levels are up slightly.

By area, the City accounted for only 26pc of the office floorspace let in September. The West End saw 240,000 sq ft of take-up. Midtown had a good month with 170,000 sq ft of transactions. Current London office demand is calculated to be around 4.3m sq ft in the City and 3.2m sq ft in the West End.

The volume of grade A (newly built or refurbished office space) let during the month reached 293,000 sq ft (41% of the total), as transactions for new space kept momentum.

New research currently being prepared by Metropolis and Cityoffices for a major report on London office construction, reveals there over 3m sq ft of speculative office space went under construction in Q2 and Q3 2016.

Manchester Office Market Summer 2016

Lambert Smith Hampton has just published its Q2 summary of the Manchester office market.

Manchester city centre office take-up for Q2 2016 reached 218,400 sq ft bringing the total for the first half of the year to 416,110 sq ft. LSH say that a number of large scale transactions are expected to complete in the second half of the year, which could lead to a year end total of 1m sq ft, close to the 5 year average.

Recent transactions included 11,000 sq ft to Mazars at One St Peter’s Square, 33,000 sq ft to the Co-op Bank at Martins House and 16,000 sq ft to Ericsson at MediaCity.

Recent Manchester pre-lets have included:

1 Spinningfields: PWC – 49,400 sq ft
Two St Peters Square: EY – 41,630 sq ft
XYZ: Global Radio – 16,670 sq ft
XYZ: Shoosmiths – 32,000 sq ft
XYZ: NCC Group – 60,000 sq ft

Swinton Insurance is under offer on 160,000 sq ft at 101 Embankment, Freshfields are due to complete imminently on 80,000 sq ft at New Bailey, DWP have a 80,000 sq ft Manchester requirement and PwC are being linked to taking further space at 1 Spinningfields.  There has growth in demand for companies looking to move operations (called northshoring) from London, for example law firm Freshfields, as well as Lonza and Escada opening new city centre operations.

Metropolis is also monitoring over 60 named Manchester office requirements from a wide variety of companies such as the likes of AJ Bell and Weinberger, as well as over 100 approaching lease expiries in late 2016 and 2017.

There is just over 1m sq ft of new office space under construction in Manchester, including schemes such as English Cities Fund’s 190,000 sq ft Two New Bailey and Ask Real Estate’s 164,000 sq ft 100 The Embankment.