2017 marked an all-time record year for property investment in Warrington it was revealed today [20 April 2018] at Warrington’s 20th Annual Property Review, hosted by Warrington & Co. Warrington’s partnership for growth.
The statistics were presented to an invited audience of business and property professionals at the Village Hotel, Centre Park, Warrington. The sell-out event was standing room only and attended by a capacity audience of 160.
There has been a steady pattern of consistently strong property transactions in Warrington over the 20 years that the review has been commissioned and 2017 was no exception.
The statistics and reports have been independently commissioned, compiled and collated by Warrington based commercial property agents The BE Group for the last 20 years.
The event was kindly sponsored by Vinci Construction, Leach Rhodes Walker, Muse, FDR Law, Omega Warrington Limited, Orbit Developments, Turner & Townsend and Cheshire Science Corridor Enterprise Zone.
Simon Humphreys, Development Director at Urban Splash gave the keynote speech
Highlights of the 2017 review included:
Thirty three investment deals recorded in 2017 amounting to 225,167 sqm changing hands with a record total investment value of £278.9 million, due in large part to Warrington Borough Council’s acquisition of Birchwood Park – which was in itself a record with the mixed-use business park selling for £205 million.
The year’s largest office deal saw Cavendish Nuclear take the whole of 106 Dalton Avenue at Birchwood Park, totalling 4,379 sqm. The deal completed at a rental of £204.54/sqm, the year’s second-highest, and the specialist nuclear supplier took the building on a 15 year lease.
Thirty One office deals above 200 sqm were completed in 2017, comprising 15,610 sqm. The average transaction size was set at 504 sqm with a clear focus on five-year lease terms.
Birchwood once again accounted for the year’s prime office rent with three deals at Bridgewater Place achieving £215.30/sqm. In total, four leasehold deals achieved in excess of £200/sqm. The largest freehold figure was achieved at Sedgefield House, Trident Business Park, in a deal worth £1,453.28/sqm.
Fifty Four industrial deals above 200 sqm were reported in 2017, comprising 51,151 sqm. 15 of these deals involved a floorspace in excess of 1,000 sqm, accounting for 71 percent of the total recorded figure.
The year’s largest industrial transaction saw the acquisition of Penketh Business Park from Langtree for just over £2 million. The multi-let site comprises 21 units totalling 12,688 sqm and the deal represented a Net Initial Yield of 9.5 percent.
Professor Steven Broomhead, Chairman of Warrington & Co., Warrington’s partnership for growth said
‘It is remarkable that the Annual Warrington Property Review has now reached its twentieth year. It’s an invaluable and independent analysis of Warrington’s economy.
Twenty years of statistics reflect the robust and buoyant performance of Warrington. Warrington is renowned across the UK for offering an excellent property investment experience.
Steve Park, Managing Director of Warrington & Co. commented,
‘Looking back at the first review published in 1999, it proclaimed that “Warrington has maintained its position as a premier magnet for investment in the North West”, and it is telling that in 2017 Warrington’s position has continued to strengthen with investment deals rising to an all-time high.
Indeed Warrington’s continued appeal across twenty years has been evident in all market sectors. From small serviced offices to nationally significant logistics warehouses at Omega, Warrington continues to service all levels of business with office and industrial take-up exceeding 2.3 million sqm since 1998’.
Councillor Terry O’Neill, Leader of Warrington Borough Council said,
‘The Warrington economy is in a strong and enviable position which is reflected by our strong property market. Our robust and ambitious framework for growth, Warrington Means Business, is set in place to lead, maintain that position and help grow the economy
Despite economic uncertainty Warrington is bristling with optimism. We stand out as one of the most economically successful cities in the UK and a key engine in the Northern Powerhouse agenda. Through our implementation of the Warrington Means Business framework we aim to keep it there.