In an area that historically has not been popular with occupiers, tenants are slowly beginning to move in. Paul Unger reports on the success stories
For one week last year, the north Manchester office scene was buzzing.
On the look-out for a new headquarters, retailer JD Sports was shown around Castlebrook Business Park and signed for the whole of Edinburgh House, 46,000 sq ft (4,300m2) within a matter of days.
The deal for £14 per sq ft on a 21-year lease was a good result for Ron Wood’s development and its agent DTZ.
But other than this, demand for large requirements has remained stubbornly quiet.
Castlebrook can still offer Warwick House, where Andrew Gardiner, a director of DTZ, says talks are advancing with an occupier to take one floor of 7,000 sq ft, leaving 21,000 sq ft.
Wood’s fortunes at Castlebrook were boosted last year when the Bury greetings card millionaire sold a package of buildings including both at Castlebrook for £26m to Standard Life – now JD Sports’ landlord.
Elsewhere, the closest rival to Castlebrook is Seddon’s Waterfold Business Park, in Heywood between Bury and Rochdale.
Seddon began developing the 32-acre site around five years ago and it is now home to a De Vere hotel and offices for PC World.
Seddon is planning relatively small units to reflect the market’s profile – expanding local businesses and satellite sales offices.
Chris Mulcahy of King Sturge, advising on Waterfold, says buildings will range from 2,000 sq ft to 6,000 sq ft. Quoting prices are around £12.50 per sq ft to rent or £135 per sq ft to buy.
“There are occupiers who are interested in the demographics of the area: low wage levels, grant assistance and strategic sites next to the motorway network,” he adds.
One M66 junction from Waterfold is Route 66, Northern Trust’s development.
Planning consent
Work is scheduled to start in the middle of this year, subject to planning consent, on two 5,000 sq ft offices and one of 7,000 sq ft.
Robert Newham, director of Charles Topham, says: “Enquiries about the offices are tailing off and we can’t do anything about that. It seemed the best thing to do was to consider residential instead to get the site finished.”
Bolton is also home to Parklands and Middlebrook, both Orbit schemes off the M61 motorway.
Parklands has let 90,000 sq ft to Keoghs and Royal Bank of Scotland, and has consent for a further 100,000 sq ft in three buildings.
Orbit is also due to complete a 32,000 sq ft building at nearby Enterprise Park III this summer. Dunlop Heywood Lorenz is advising Orbit.
The cost-watching northern occupiers are the sort who could be attracted to another of the eastern reaches’ offerings, Henry Square, Ask’s 400,000 sq ft office and leisure scheme.
Tony Bray, of Dunlop Heywood Lorenz, advising Ask, says: “We are talking to four potential occupiers at Henry Square with requirements ranging from 5,000 sq ft to 30,000 sq ft and the first buildings are expected to be completed mid-2004.
“The north and east have a great advantage when people are being more cost-conscious. Add to that the completion of the M60 loop and improved public transport and staff will find themselves well placed.”
Meanwhile, the rest of the north will continue to build on a small scale, careful not to over-supply.
Jim Clarkson at Insignia Richard Ellis says: “The tortoise and the hare spring to mind. North Manchester just quietly gets on with its business.”
Discussion of the north Manchester picture is not complete without a glance eastwards at the disputably northern Central Park, once called North Manchester Business Park but now undergoing a curious name-changing process.
In August of last year, trade secretary Patricia Hewitt approved the North West Development Agency’s compulsory purchase order of 89 acres of land to put towards Central Park’s 450-acre total.
At the time, it was the first major CPO by a redevelopment agency. The NWDA has since made a larger order for 420 acres in Wilson Bowden’s Kingsway Business Park in Rochdale, Greater Manchester.
But for most agents, Central Park is not part of the north Manchester market both geographically and owing to its size.
The 450-acre site in Monsall, just two miles from the city centre, will challenge other supersites, such as Miller’s Omega near Warrington, or the European-funded gateway sites of Merseyside.
James Weedon of Cushman & Wakefield Healey & Baker, recently appointed by Central Park developer Ask:Akeler as national agent, says: “Given the size of the site I would not say it competes with north, east or south Manchester. Really it is on a regional level. We will be competing for large, single-occupier back-office requirements of 50,000 sq ft or more.”
One of the forthcoming Metrolink lines announced in transport secretary Alistair Darling’s December funding package is set to link the city centre with Central Park, making it more accessible.
Interestingly, it is on the workforce front that Weedon believes Central Park competes with the north Manchester market.
“There is a large, available and cost-effective workforce in Oldham and that is where we will draw many of the staff for these offices.”
The first phase of the development will extend to 1.4m sq ft of offices, with the first 200,000 sq ft prelet to ICL Fujitsu last year for £14 per sq ft. (see p114)
