Bruntwood, the Manchester-based landlord, said it is weighing the acquisition of more office space in Old Trafford as the area's suburban office market shows signs of revival.
Bruntwood Regional Director Andrew Cooke, responsible for the firm's £150M out-of-town portfolio, said it was "not out of the realms of possibility" as Bruntwood begin work on a 92K SF scheme at Old Trafford's UA92 academy, in a joint venture with UA92.
Bruntwood owns 285K SF of Old Trafford office space in three blocks, and are the once-flourishing office district's dominant landlord. The area seems to be flourishing anew. This year Bruntwood expects to lease 55K SF in Trafford House alone, following a refurbishment.
"The effect of improving the stock has been to push up occupancy rates from 50-60% to 90%, and to hold rents steady at £12-£13/SF, against competition and with higher customer expectations," Cooke said, speaking exclusively to Bisnow.
"The price differential with rival office locations in Salford Quays and Manchester City Centre has probably never been greater, so we feel there's a real opportunity here, a real market. UA92, along with the council masterplanning exercise, new tram connections and residential development is important, because where else do you get all those dynamics working together?"
Old Trafford floorspace lets at a discount of about 40% to comparable space in Salford Quays.
"Trafford is plausibly a key future location in the city," Cooke said.
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