Does Amazon have its eyes set on city centre?
THE ONLINE GIANT IS ALREADY INVESTING HEAVILY IN THE REGION
AMAZON could be about to open a 70,000 sq ft Manchester city centre office.
Speculation that the fast-growing internet retailer could be about to add a regional HQ to their existing north west portfolio of warehouses, comes as the Manchester office market prepares for a red hot autumn.
Manchester’s lawyers and accountants are stepping back into the city office market for an autumn shopping spree.
Consultants say that professionals are behind 200,000 sq ft of city centre office requirements.
Some big names – including Eversheds Sutherland, who are believed to be looking for 45,000 sq ft space – are said to be in the market.
Eversheds is expected to leave its existing city centre home at Great Bridgwater Street by 2020.
Amazon is already investing heavily in the region, taking floorspace for a fulfilment centre at the Airport City development.
The 260,000 sq ft warehouse developed by Manchester Airports Group and logistics specialist Stoford has been extended with two internal mezzanine levels, adding 654,000 sq ft.
Amazon are thought to have looked closely at a number of city centre offices including Deka Immobilien’s 271,000 sq ft No 1 St Peter’s Square, where 80,000 sq ft is still vacant. A deal is said to be six to eight months away from completion.
Amazon did not respond to a request for a comment.
If confirmed, the Amazon deal would take off the market a large slice of new vacant floorspace, increasing pressure on professional firms who are also looking for new offices.
Savills and GVA are joint agents at No 1 St Peter’s Square.
Nobody at either firm was available for comment.
Professionals took more than 700,000 sq ft in central Manchester in the last 18 months, accounting for slightly under one quarter of all office market take-up.
Developments hoping to mop up some of the professional demand include Worthington’ Properties, 116,000 sq ft 125 Deansgate.
The concrete core structure of the 12-storey block will begin to rise out of the ground next week with completion timed for early spring 2019.
Russell Worthington, development director at Worthington Properties, said: “The professionals continue to be the sector moving the most in the city centre.
“We’ve a lot of requirements for the next 12 months, which is a bit early for us, but still plenty more looking on a longer timetable.
“We’re expecting the professionals to be the mainstay of our tenant mix. The city centre has such a short supply of new office space – barely 300,000 sq ft left – and that is going to mean higher rents.