The north west continues to attract growing numbers of businesses and people away from more traditional London bases, and it’s a hotspot for commercial property on offer.
The likes of Manchester, Salford and Liverpool are continuing to “syphon” companies of all sizes away from the south, with affordability and investment growth making the north west a new favourite for many.
New research from Sirius Property Finance also shows that the north west has the highest number of commercial property opportunities for those coming to the area, boasting a 16.6% market share of the total 9,000 units for sale across England.
This is followed by 15.7% that exists in the south west, and 11% in the West Midlands, led by the likes of Birmingham which has seen huge amounts of regeneration. The future appeal of HS2 has also boosted the Midlands’ city’s potential for businesses and workers alike, both nationally and internationally.
North west holds an array of options
As Kimberley Gates, head of corporate partnerships at Sirius Property Finance, points out, a business’s ideal location will depend largely on what type of investment you want to make, whether it be warehouses, offices or retail.
The north west is the most well-rounded when it comes to what’s on offer in the commercial property arena, according to the data. It ranks top for retail space (17.4%), second for leisure and hospitality (18.5%), and top for industrial and warehouse space (15.4%).
Meanwhile, the West Midlands came out in second position for office space (12.7%), after London’s 21.1% lion’s share. London also has the second highest level of retail space available (13.4%). The south west came out top for leisure and hospitality, with 22.4%.
“Despite the problems facing much of England’s commercial sector, there remain plenty of opportunities in the current market,” Gates points out.
“The north west looks like a really good investment location with every base, from shopfronts to warehouses, covered.”
Capital no longer the ‘beating heart’
Since its completion in 2010, Salford’s Media City has sparked a lot of change in the Salford and Greater Manchester area when it comes to attracting different types of businesses. The major corporations that have opened there, including the BBC, have encouraged more similar businesses to do so.
This is just one standout area of regeneration, though, as across the north west the ‘levelling up’ agenda is becoming increasingly apparent when it comes to investment. It is not only a more affordable place than London and the south, but attracts huge amounts of talent from the region’s world-class universities and beyond.
Gates comments: “Why is the north west so hot right now? It’s because cities such as Manchester, Liverpool, and Salford are syphoning an awful lot of organisations and businesses away from their traditional London bases due to having more affordable markets.
“As a result, there is an increasing sense that the capital city no longer has exclusive rights to the beating heart of British media and industry and this is helping drive the commercial market in other regions of the nation.”
Property investment
As a residential property investment location, the north west regularly ranks among the most lucrative in terms of offering the best rental yields, high tenant demand, and a strong appetite keeping the housing market moving quickly and prices strong.
Due to the fact that average property prices in the region are below the national average, borrowing levels tend to be lower there than more expensive areas, which can stand it in good stead during times of interest rate rises.
Recent research from Sourced Franchise also found that the average rental yield for buy-to-let landlords across the region is 5.5%, higher than any other region in England. On a location by location basis, some areas achieve above this rate, such as parts of Liverpool, according to other research.
BuyAssociation is a property investment consultancy specialising in connecting investors with some of the most lucrative projects across the UK, with a particular emphasis on the north west where some of the best returns can be made. Get in touch for more information.
