NOMA brings forward development of historic buildings to capitalise on office demand
NOMA is bringing forward two developments in the centre of Manchester to cater for major occupiers and creative businesses.
The joint venture between The Co-operative Group and Hermes Investment Management is seeking to take advantage of growing demand for both Grade A and great value quirky office space in the heart of the city.
Federation, a 70,000 sq ft warehouse on Dantzic Street, will be the first to complete this summer. The former drapery warehouse sits right next to the Northern Quarter, Manchester’s creative district. It will cater to the city’s growing army of digital, tech and creative companies who are playing an increasingly influential role in Manchester’s local economy.
The adjoining Grade II listed building, Dantzic, covers 65,400 sq ft across nine floors and will be stripped back to provide loft-style workspace likely to appeal to creative companies.
To complement this rustic offering, Hanover is a 90,000 sq ft listed building which is set to be transformed into premium office space. Brimming with character, it will also feature 18,000 sq ft of ground floor retail and leisure space. It is located directly opposite Manchester Victoria, which has enjoyed £44 million of investment and is emerging as a new regional transport hub. Hanover is due to complete at the end of 2017.
NOMA is a 20-acre mixed-use neighbourhood that is transforming the city centre, linking the central shopping district with Manchester Arena, the Northern Quarter and the newly revamped station.
As well as forging ahead with more than 250,000 sq ft of office space at various price points, NOMA is also creating substantial new public realm, which has included Sadler’s Yard, named by the public after a city-wide campaign. The neighbourhood will become the city centre’s new commercial hub blending a unique mix of historic, listed structures and new buildings.
Research by Colliers International found the supply of Grade A office space in central Manchester has fallen 61 per cent to its lowest level since 2006. The agents also estimated that vacancy rates have reached a record low of 6 per cent.
Demand is being driven by an influx of investment as both domestic and global investors increasingly bank on the future of the Northern Powerhouse.
NOMA aims to be one of the best-connected business destinations in Britain – physically and digitally. Along with Victoria station, the neighbourhood sits next to the Shudehill transport interchange and is a few minutes from the new Exchange Square tram stop which links directly to the airport.
NOMA has partnered with leading digital consultancy Magnetic North to develop a smart city strategy; this year will also see first class Wi-Fi become available across the public space.
Last November, Manchester City Council granted planning approval to 2 and 3 Angel Square. The pair feature 150,000 sq ft and 250,000 sq ft of Grade A office space, opposite the award-winning One Angel Square.
More than 6,500 people already work at NOMA.
David Pringle, director of NOMA at The Co-operative Group, said:
“Our decision to bring forward development underlines our confidence in both the product and the market. Schemes like Federation, Dantzic and Hanover are unique in the local market and their regeneration will contribute hugely to the remodelling of Manchester’s city centre.”
Ben Tolhurst, asset manager at Hermes Investment Management, said:
“This development offers loft-style space and more traditional Grade A offices within the same development. Having a range of space available for different types of occupiers is key to driving a real sense of place. There is already a genuine sense of community across the neighbourhood, driven by the newly opened Sadler’s Yard, the plethora of activity happening onsite and the many of thousands of workers already based at NOMA.”
Peter Gallagher, director of national offices at Colliers International, said:
“Manchester has ambitions of becoming a global business destination, and the quality and variety of office space NOMA is bringing forward leave it well placed to capitalise on the growing demand we see across the region.”
Matt Mycock, director at JLL, said:
“We have seen the incredible and long-standing benefits created by the transport-led regeneration of Kings Cross and with its own rail hub and a blend of historic and new build developments, NOMA will succeed in attracting not just local occupiers, but national and international firms seeking smarter space.”