Manchester's commercial property market has benefited from
impressive investment this spring. Increases in occupier and
investor activity and has almost rivalled London's recent fillip,
indicating that further national economic recovery is imminent.

First quarter office market take-up is 61 per cent up on 2012,
at 274,800 square foot, driven by a number of large city centre
office deals including Traveljigsaw and World Pays.  If the
current rate continues it is likely that Manchester will exceed the
10-year average, of 900,000 square feet, for the full year.

Developer confidence has been further boosted by the £142
million sale of Co-op's One Angel Square to Chinese
government-backed investors; one of the biggest property deals the
city has ever recorded.

Manchester properties are also
attracting further investment from overseas, with over 20 large
commercial property firms expected to enter the market over the
next eight months; city offices and industrial property are likely
to be particularly attractive.

Dan Crossley, investment specialist at WHR, said: "We're in a
completely different world now, compared to the end of last year.
Property companies and overseas investors see Manchester as a place
to invest."

"Today, we are seeing probably 10- times the activity we were
seeing this time in 2012."

Notable sales include the Royal Exchange, between Cross Street and
St Ann's Square, which is being made available only for the second
time since being built in 1729; this is expected to sell for around
£46 million. Savills is also expected to complete the sale of the
Exchange Quays office complex, in Salford, for around £32
million.

Last month Hines also signed a joint venture agreement with
Manchester & Metropolitan Properties to develop Landmark, a
178,000 square foot office building by St. Peters Square.

Anthony Leonard, director at Hines, said, "We have been looking
at opportunities in Manchester for some time and are delighted to
have finally secured such a prime city centre site.

"Availability of quality office space will become scarce and,
with few new buildings under construction, we believe there is a
tremendous opportunity in Manchester to deliver new Class A
space.

"In bringing new stock to the market in 2015 and beyond, we hope
to be in a prime position to capitalise on an improving
economy."

Co-op's One Angel Square headquarters, although under new
ownership, has recently won three awards at the RICS North West
property awards.

Chair of the RICS North
West judging panel, Jane Lathwood of GVA said: "One Angel Square is
more than just a new head office.

"It is an iconic landmark that will enable The Co-operative
Group to significantly reduce its operating costs, whilst
increasing staff performance levels thanks to the building's
inspirational, innovative working environment.

This accolade is another indication of Manchester's booming
commercial property market, and is likely to encourage further
investment into the area.

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