Peter Gallagher Colliers International
Ready to occupy offices will be completely absent in 2016, according to Peter Gallagher of Colliers

Colliers’ predictions for 2016

A drop in office supply, speculative shed development and an ‘insatiable’ demand for retail space will all be on the cards in 2016, according to Colliers International in Manchester.

Peter Gallagher, director of national offices at Colliers in Manchester, said: “We expect that current levels of total and Grade A office take-up and completion of lease transactions currently under offer in Manchester will result in an unprecedented complete absence of ‘ready to occupy’ supply in the market by Q2 2016.

“Greater forward planning by occupiers and future reservation of new space is evident by the emergence of a true pre-let market. We expect 100% of the currently ‘in-build’ Grade A stock to be let before practical completion, fuelling the establishment of a fully-fledged, large space pre-let market.

“Although there is 1.34m sq ft of consented schemes it is expected that lack of readiness/funding will result in only a limited race to speculatively bring space to market. In the city centre we expect this to comprise less than half of the total consented schemes resulting in a continuing shortage of Grade A office supply.

“This continuing shortage will put pressure on rents. The top rent in the city centre at the end of 2015 is £34/sq ft and we expect prime Grade A city centre office rents to have reached £35/sq ft by mid-2016 and £40/sq ft by the end of 2018.”

Julien Kenny-Levick, director of industrial and logistics at Colliers, said: “Although 2016 will see an increase in speculative development, it may not be sufficient to meet the demands of occupiers in the North West. Industrial and logistics demand will continue to be driven by e-commerce with occupier demand expected to be steady rather than spectacular, with omni-channel retailers at the forefront. Consumer demand for same-day and timed delivery slots will drive further demand for ‘last mile delivery’ urban sheds.”

David Fox, head of retail agency in the North at Colliers, said: “The retail sector in the North West and elsewhere will continue its steady recovery. Insatiable demand from A3 users will continue to help absorb vacant space and, with mainstream retailers now more comfortable with the complexities of omni-channel retailing, selective expansion and new entrants will create rental pressure in locations other than London. We expect to see more consumer brands following the likes of Apple, Samsung and Dyson in acquiring prominent units to promote their products.”

Your Comments

Mystic Meg there…

By Baser

Manchester’s retail core needs a complete overhaul. It just doesn’t cater effectively for the size and breadth of the market demand that exists in Greater Manchester. How many brands would like representation in the city but aren’t here due to a lack of suitable site?

The city needs to grasp the nettle and tackle the dated Arndale Centre with a programme of progressive demolition and rebuild, injecting more open space whilst expanding the core eastwards towards King Street and westwards towards NOMA. We need to a retail environment that matches the city’s ambitions and an environment that is pleasant to be in rather than somewhere that people go because the alternatives are currently less convenient.

By Wilson Womersley

The Piccadilly Station – Arndale stretch of the city centre is worlds apart from the adjacent King Street – Spinningfields area. Unfortunately, this is the bit most visitors will see when coming by rail and it really doesn’t promote the city in a good light.

How about creating a new public park on part of the site of the Arndale (the old bit on Market Street) and building over the blighted Pic Gardens with a small scale replacement retail offer for the bit lost. Should balance up the retail areas nicely, with a public area between the two and also connecting to The Shambles.

I really should be a masterplanner.

By Uni

This is the trouble with Mancunians and their ‘town’ mentality.Londoners will go to Chelsea,Kensington,Knightsbridge etc,they do not all congregate on Oxford street to buy a shirt.At the moment there is no alternative place except the Trafford centre for half decent shops,but with the expansion of the Metrolink,we now have an opportunity to invest in other areas.Why for instance can we not have a John Lewis in Bury,or Altrincham?Or why not build an out of town John Lewis near the Ethiad? As Manchester grows something has to be done about the dreary suburbs,to attract people to them to live and shop.Chapel street in Salford has a lot of potential and there is room around there for a decent department store,a cockstride from Spinningfields. Or that ghastly plot of land where Boddingtons used to be.That drive down Bury New Road must rank as the dreariest in Western Europe and the councils on oboth sides of the Irwell need to sort that out..

By Elephant

Can you tell me the winning lottery numbers as well?

By Peter D

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