Installing the Metrolink tram loop will mean three years of traffic disruption. But the new link will also help to fill some key developments, just as Manchester’s economy is starting to recover. David Thame reports
Was it Stalin who said you can’t make an omelette without breaking eggs?
If it was, Comrade Joe’s wise words have struck a chord with players in Manchester’s office market, where everybody loves the idea of the new Metrolink tram loop in Manchester city centre – and is trying to cope with the disruption it is causing.
The new loop, which joins the existing St Peter’s Square and Victoria stops via Cross Street and Exchange Square, will mean digging up roads and three years of complex traffic diversions. Work has already begun on diverting utilities, including gas mains.
The trauma is unlikely to be as intense as it was in 1990-92 when the first city-centre tram lines were cut through Mosley Street. Since then street-running lines in Ashton, Oldham and Rochdale have honed the skills of the Transport for Greater Manchester team.
Even so, the timing isn’t brilliant for some. The Universities Superannuation Scheme has been in the middle of a revamp of its 55,000 sq ft building, Cross Street, immediately on the new tram route. Last month it announced 9,500 sq ft of lettings through joint agents GVA and Savills. USS has another 22,000 sq ft to shift on the second, fourth and fifth floors.
Refurbishment at , completing this spring, is also unhappily timed. The 57,000 sq ft block was slow to let after it timed its completion badly – in 2008. Previously known as Aurora, the block on the tram route is still half empty. OBI and JLL are joint agents.
Letting agents remain upbeat. Richard Lace, associate director at OBI Property, says: The additional capacity provided by the second city crossing will hugely benefit occupiers migrating in to and out of the city, adding to its attraction. 55 Princess Street is perfectly placed to satisfy the multiple current requirements in the market.”
Chris Lloyd, director at DTZ, says the second city crossing comes at a time when the office market is humming – and this piece of good luck will limit the impact of the infrastructure works.
“The dynamics of today’s office market mean the number of buildings affected will be minimal,” he says, but warns: “Strangely, first- and second-floor offices are most troubled because they run parallel with the tram lines.”
“We’ve not yet seen any discounting of rents, but perhaps rental growth will be slower in those buildings next to the line.
“Maybe the top of King Street will become a bit of a ghost town. But improvements to the tram line will counterbalance the disruption.”
For developers along the city loop route the short-term disruption is worth the long-term gain of having a funky new tram route by their doors.
James Heather, partner at Argent Services responsible for the 268,000 sq ft No , says: “Short-term there is obviously some disruption, but we’ve co-ordinated with the city council, and while we need to explain what is happening outside to potential occupiers, there have been no negative reactions.”
Darryl Lee, director at Mosley Street Ventures leading the 162,000 sq ft No 2 St Peter’s Square, is also sanguine. Work on his project is due to begin in May, and is timed to match the tram works. “We have been aware of the Metrolink tram extension from the outset of the design of 2 St Peters Square. In fact, the new building will be completed at the same time as the completion of works to the tram extension and the new public realm,” he says.
OBI’s Lace says improved transport infrastructure in the city centre is already winning deals.
He explains: “We have noticed a trend for large occupiers relocating from out-of-town locations in to the city centre to be close to mass transit public transport hubs, evidenced by the arrival of AutoTrader at First Street. They followed on the back of others such as Jacobs and MoneyPlus Group, who have done the same over the past 12 to 24 months.”
But Lace says it could be the Ordsall Cord that makes the real difference. The proposal, due to go before a four-week public inquiry on 23 April, creates a new rail link between Manchester’s Piccadilly and Victoria stations. It means Salford Central – the Cinderella of city centre stations – becomes a mainline hub. Work on site could begin late this year, for completion in 2016-17.
Lace explains: “This improved connectivity will certainly assist in bringing forward new investment to the area, such as development at the former Granada Studios site and the return of speculative development by Allied London at .”
Muse, through the English Cities Fund, is banking on the Cord benefiting its development at New Bailey. In January Legal & General agreed a £60m deal with English Cities to forward fund a 125,000 sq ft office building. Nearby, Ask Developments has secured £20m from Tristan Capital Partners for a 172,000 sq ft first phase at Greengate. Neither would be as appealing without the Cord – and the new city tram loop.
Eggs are being broken all over the city as it gets its infrastructure in order. Expect the omelettes to follow.
Oldham back on track after a 62-year break
After a 62-year break the trams are back in Oldham town centre. The final stretch of the 14-mile Oldham-Rochdale tramline opened at the end of January.
The big commercial beneficiary will be the Oldham Mumps area. Architect BDP has been commissioned by Oldham council to identify potential development opportunities, including a masterplan for the area. The council promises “exciting and major development” close to the new tram stop.
The plan builds on existing strategies for the Eastern Gateway and the Alexandra Retail Park investment zones.
First Choice Homes Oldham has already signed up for a 35,000 sq ft office scheme. Early interest will focus on an extension of business park and new development at the Mumps park-and-ride site, totalling about an acre.
Council leader Jim McMahon says: “The overall plan includes new residential and business areas, while making the best use of existing buildings and vacant land.”
