The UK’s commercial property market has seen huge improvements recently, with growth in demand for a wide range of properties including office, industrial and retail. However, much of the recovery has been centred around London and the South East, with the Crossrail project and a hugely improved business climate encouraging a high level of both international and domestic investment.
Fortunately, it appears that the tide is beginning to turn and an increasing number of businesses and investors are beginning to consider opportunities in other locations. This is certainly the case in Manchester, where demand for has risen steeply in the past year or so.
According to economic think tank New Economy, overall take up of commercial property during 2013 totalled around 890,000 sq ft, marking a 13 per cent improvement from the 770,000 sq ft taken up in 2012. And thanks to the growing creative and media sectors, experts predict that this momentum will continue to build due to the presence of MediaCityUK in Salford.
Acting deputy director for New Economy, Dr Alexander Roy, believes that a growing business confidence is behind the resurgence of the Manchester commercial market.
He says; “The increased demand for office space in Greater Manchester affirms that business confidence is growing as the UK economy turns a corner.
“Elsewhere, indicators for the conurbation’s economy continue to show signs that point towards recovery.
“All eyes will therefore be on the Chancellor next month to see what impact the 2014 Budget might have on reinforcing and maintaining growth.”
There has been something of a power play over the digital and creative sectors between London and Manchester in the past few years, with the BBC’s move to MediaCityUK and the lower costs of the area making the northern city an attractive prospect for start-ups and small firms seeking expansion. Yet with the Olympic Park’s official broadcasting and media centre due to be converted by iCity later this year, London is clearly unwilling to relinquish its grip upon the lucrative technological sectors.
With business confidence steadily rising as inflation drops it seems that the majority of UK cities are seeing a welcome boost to their commercial property fortunes. However, the question is whether Manchester will be able to hold its own when exciting projects such as the redevelopment of the Royal Albert Docks in London come to the market.
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