MANCHESTER is heading for a massive shortage of new office space. New research by Dunlop Heywood Lorenz shows total office requirements from major companies, financiers and lawyers totalling a mighty 144,000 sq m - that means 35 acres, the equivalent of 22 football pitches, or the entire Arndale Centre.
But the total supply of new grade-A office space is just 2,600 sq m less than half a football pitch and new builds under construction are just 17,370 sq m.
DHL director Peter Gallagher said: ''Manchester city centre is facing an unprecendent shortage in the future supply of new grade-A quality office space. The position at the moment is one of minimal stock, with virtually no new build in progress.''
The curve on the supply graph over the next few years looks a bit like the Grand Canyon staring up at the Rocky Mountains. Figures produced by DHL suggest a supply deficit of more than 18,600 sq m in 2002 and 2003, with supply easing by 2004 when the first phases at Allied London's 122,780-sq m Spinningfield office scheme become available.
DHL says that annual city centre take-up averages around 41,800 sq m, of which between one-quarter and one-half is new grade-A offices.
If its predictions are corrrect, then many top Manchester companies will find themselves trapped in old or inefficient offices, and new arrivals to the city will turn to rivals like Leeds and Birmingham instead.
DHL research shows that Manchester's lawyers are demanding 37,000 sq m of new office space, with accountants, banks and financiers looking for 70,000 sq m. Mail order, travel, entertainment and retailing accounts for the rest.
The research comes as two huge new requirements have emerged. Ticketmaster, the world's leading entertainment ticketing company, is looking for a Manchester site for a new 5,570-sq m call centre (close to a large student population because students are often keen to take early evening jobs at call centres). Rival sites in Cardiff and Newcastle are also under consideration.
Meanwhile insurance claims firm The Accident Group is to have launched a 7,430-sq m Manchester city centre office requirement. Dunlop Heywood Lorenz, which is thought to be advising Accident Group, declined to comment.
Tweet