Economic recovery – future developments leading Manchester’s economic recovery
New approvals
In spite of the effects of the pandemic on the economy, the past 12 months have seen Manchester City Council’s Planning and Highways Committee approve a range of leisure, hotel, office and residential developments, which will boost the construction sector and accelerate economic and employment growth over the next four years.
Leisure and visitor economy:
In terms of the leisure and visitor economy:
- New arena: A new 23,500-capacity arena at the Etihad Campus, the UK’s largest and most technically advanced performance venue, is scheduled to open in 2023. The construction phase will support 3,344 jobs, while the operational phase will support 585 jobs, attracting an audience of over one million per annum and boosting the city’s visitor economy.
- Hotel development: Two new hotel developments will further add to the city’s visitor and leisure economy, with 152 bedrooms at 2–4 Whitworth Street, and 151 bedrooms at 67–75 Piccadilly. The new developments will support 425 construction jobs and over 200 permanent jobs.
Manchester has led the way with its plans for the repurposing of the Debenhams and Kendals department stores in prominent locations in the city centre:
- Rylands building (Debenhams): A three-storey rooftop extension and floors 1–7 repurposed for business space, and new ground floor units for retail/food. Construction spend will support 678 construction jobs, and the new space will accommodate up to 2,400 jobs in the offices and 163 jobs in the retail space.
- Kendal Milne building (House of Fraser): A three-storey rooftop extension and the conversion of all upper floors of the listed building to provide offices and a new adjoining 14-storey office building, providing 564,433 sq. ft. of office space and 155,256 sq. ft. of retail/leisure/flexible commercial use. Construction of this major project will support 3,239 construction jobs, and the new space will accommodate up to 3,491 jobs in the offices and 400 jobs in the retail space.
Office and business development:
Developers continue to bring forward new office development, allowing Manchester to provide a regular pipeline of Grade A office space and deliver the next generation of COVID-secure office accommodation. Developments include:
- No.1 City Road: Comprising 11-storey and 14-storey buildings, both providing modern office space, along with improvements to the public realm. The site lies within the First Street SRF area, and the two buildings will provide 500,000 sq. ft. of new accommodation. Construction will support 1,222 jobs, and the new space will accommodate up to 2,909 commercial jobs.
- Pollards Yard, New Islington: Five new mixed-use buildings – three eight-storey and two five-storey – providing 500,00 sq. ft. of office space aimed at smaller companies, with flexible uses on the ground floor, and new public realm and community use. Construction will support 700 construction jobs, and the new space will accommodate up to 3,600 jobs in the offices.
With over 200,000 jobs already in the city centre and the Oxford Road Corridor, new modern well-ventilated and low-energy office space will support a new wave of company growth, new start-ups and inward investment, in support of the city’s growth forecasts.
Residential development:
Manchester has one of the fastest-growing city populations in Europe, partly driven by the high-density apartment model in the city centre. New residential development of scale has continued over the past 18 months, with a number of new developments securing planning permission. These include:
- First Street Co-living: A new scheme consisting of a 45-storey building and three smaller blocks for co-living (2,224 bedrooms across four blocks) and 44,000 sq. ft. of amenity and surrounding public realm.
- St John’s Water Street: Two buildings aimed at the co-living market; the first (36 storeys) will provide 800 bed spaces, and the second (32 storeys) will provide 1,600 beds.
- Gould Street: Nine new apartment buildings ranging from 8 to 34 storeys high to provide 1,202 residential units (with 85 on-site affordable homes) and 2,066 sq. ft. of commercial space. This represents £220million of investment in the former gasworks site.
- Victoria Riverside: 634 homes across three towers of 37, 26 and 18 storeys, linked by podiums. The £185million scheme includes 611 flats and 23 town houses, and forms part of the Northern Gateway masterplan.
- Ducie Street: New mixed-use development to comprise one 10-storey building to provide 45 residential apartments, and a part-14-storey building to accommodate 84 apartments and 3,713 sq. ft. of commercial floor space at ground level.
With some 80% of city centre residents of working age, these new developments will further increase the high skilled workforce, which has accommodated the city’s economic growth over the past ten years. In total, these new developments will boost the workforce by an estimated 6,400 people.
These new developments come at a time when Manchester is seeking to re-establish the economic momentum interrupted by the pandemic. The range and scale of development investment is testament to the city’s pro-development approach to planning.
In summary:
The planned new developments have a gross development value of close to £2billion.
Construction work will support over 15,000 jobs over three years, and support 5,000 jobs per annum in the construction industry.
Commercial space with the capacity to accommodate more than 13,000 jobs will be delivered, allowing businesses to be accommodated in new modern well-ventilated and low-energy office space, supporting a new wave of company growth, new start-ups and inward investment.
Residential development will provide homes for sale and rent across a range of sizes, including high-demand studio and one-bedroom apartments for an incoming workforce, and new housing accommodating 8,000 people.
Other benefits, such as for the construction supply chain, will benefit businesses across the north west, while new business rates will be invested in bringing forward new regeneration opportunities.