The latest area of Manchester to attract the attention of employers and investors is the Oxford Road Corridor, home to lots of students, life sciences firms and healthcare organisations – and one of the best‑connected parts of the country, writes Freddie Guest.
The growth of Manchester in recent years has been profound, with the city having made a global name for itself through its thriving economy, world-class universities, talented workforce and enviable quality of life. Greater Manchester is the UK’s largest economic region after the South East of England, with a gross value added (GVA) of £66.4bn, and it has attracted more foreign direct investment in the past decade than any city other than London, being home to more than 2,000 internationally owned companies. Couple this with affordable housing and a strong residential pipeline and it is easy to see why Manchester is continuing to attract high-profile employers and both domestic and international investment.
Over recent decades we have seen a number of significant developments in Manchester, with Spinningfields, in the west of the city raising the bar by becoming one of Europe’s most-successful urban regeneration projects and NOMA revitalising the north, spearheaded by One Angel Square, once declared the greenest building in the world.
Moving into a new decade, we are now approaching an exciting era in another area of the city, with the regeneration of Manchester’s innovation quarter to the south-east.
Known as the Oxford Road Corridor, the area is already home to a unique concentration of knowledge, business and cultural assets. Driven by the regeneration taking place in the area, it is projected to become a world-class economic and social district by 2025. Through strategic partnerships, the corridor is on track to become one of Europe’s top five innovation districts across its 243ha.
So what is it about the Oxford Road Corridor that is attracting significant interest and the investment needed to create a thriving new ecosystem in this area of Manchester?
First, the corridor is home to a number of higher education sites for both the University of Manchester and Manchester Metropolitan University, with more than 72,000 students located in the area. The talent pool created through this large student population – along with the fact that Manchester retains the highest percentage of its graduates outside London – will help create a highly valued, knowledgeable workforce to fill the thousands of jobs set to be created over the next few years.
The corridor also has five specialist hospitals, which have led to the area being recognised internationally as a leader in pharmaceuticals, healthcare and bio and life sciences. Home to a large scientific and digital community, the neighbourhood has already welcomed a wealth of knowledge-intensive organisations and businesses and is no doubt set to attract further occupiers in this field as development progresses.
As well as standout educational and healthcare markets, the Oxford Road Corridor benefits from unrivalled connectivity. The corridor is served by Oxford Road station, Manchester’s second-busiest railway station, as well as the nearby Piccadilly station, and is one of the busiest bus routes in Europe.
With the recently completed Ordsall Chord providing a new piece of rail infrastructure linking Manchester’s stations, and future improvements earmarked for both Oxford Road station and Piccadilly station, the connectivity of the Oxford Road Corridor is set to improve.
Landmark partnership
So what investment activity is taking place? Most notable is the landmark 50:50 partnership between Bruntwood and Legal & General to create Bruntwood SciTech, the UK’s largest property platform dedicated to driving science and technology growth. In the Oxford Road Corridor, this has included investment into Manchester Science Park, Citylabs, Manchester Technology Centre and Circle Square. Along with other partners, Circle Square will deliver 1.2m sq ft of commercial office space, 1,700 new homes, two hotels and 100,000 sq ft of retail and leisure space, all set within 250,000 sq ft of public realm. With the first phase of the commercial elements due for completion later this year, the scheme’s first two commercial buildings, No 1 and No 2 Circle Square, have received exceptional levels of interest from high-growth businesses from across the UK, reflecting the demand from firms looking to take advantage of the fundamentals unique to this area of the city.
Additionally, last year the University of Manchester announced its plans for ID Manchester, a £1.5bn innovation district located to the north of the corridor. The university is seeking an investment and development partner to deliver 2.6m sq ft of new workspace, 1,000 new homes, two hotels and £28m of public realm. With the potential to create 6,000 new jobs, the neighbourhood will further enhance the district’s credentials and become a focal point for international businesses looking to partner with some of the world’s brightest university talent.
It’s not just the corridor that is set to take advantage of the fundamental drivers on this side of the city. Neighbouring regeneration projects such as Mayfield are starting to come forward and will present an opportunity to transform 10 hectares into a thriving urban neighbourhood complete with Manchester’s first city centre public park.
Reviewing all the investment taking place, it’s clear to see that the Oxford Road Corridor is a hugely exciting place to be, whether you study, work or live in the area. A challenge for investors looking to take advantage of this will be the availability of stock, with substantial ownership within the corridor in public sector/university hands. This may mean that investors will have to look for alternative ways to access the market, as seen with the joint venture structures of Bruntwood SciTech, ID Manchester and Mayfield.
However, what can’t be denied is the exceptional impact that the area’s development will have on Manchester and the wider North West region. The district already generates 20% of the city’s economic output and with such a significant pipeline in place, this can be expected to grow further. Manchester city centre has been firmly placed on the global map in recent years and the spotlight is now focused on this side of the city.
Freddie Guest is associate director at Savills Manchester
