Member Article

Warrington Property market enjoys a record breaking year

Warrington Borough Council has published its sixteenth annual property report, which provides a barometer of activity in the local commercial and residential property market.

Many of this year’s findings are exceptional, particularly the findings regarding industrial and investment market take up.

Warrington’s industrial property take-up for 2013 was the highest recorded since the reports began in 1998. With a total take-up of nearly 2 million sq ft this was 31 percent greater than the previous high recorded in 2010.

It was also a record year in terms of the highest rental achieved with Travis Perkins agreeing to pay £3 million a year for their 700, 000sq ft unit currently under construction at Omega.

The investment market is up 75% on the previous year. £140 million worth of assets were traded. A number of high spending investment funds adding to their existing Warrington portfolios.

These included one of the biggest purchases for some years when Standard Life bought the new Travis Perkins warehouse, currently being built at Omega, for £58.6 million. Also at Omega, LaSalle Investment Management paid £14 million for Hermes’ new building.

Following the national trend, while there is still an oversupply of vacant office space, Warrington has seen its highest level of activity since 2001. Take up exceeded 323,000sq ft and 46 businesses chose to relocate to Warrington. A number of large HQ moves helped contribute to this success, including MDS and Golden Gates Housing Trust.

Generally Warrington’s retail offer continues to improve. Golden Square saw the arrival of Primark on December 2013 and with 140 retailers, it is now close to full occupation.

Golden Square owners Warrington Retail Partnership put the centre on the market earlier this year at a figure of circa £125 million.

It is understood that a number of aggressive bids have been made attracting international investors and that a sale is likely to complete in the next six to eight weeks. In 2013 there were less than 100 deals exceeding £100 million in the UK. This sale could therefore place Warrington amongst the premier league of investments.

The local housing market continues to grow through improvements in values and strong developer activity. The number of new homes completed by developers rose again to 647 net completions (664 gross) the highest level recorded since 2007/08. This comfortably exceeds the Borough’s Development Plan target of 380 (or 500 within the emerging Local Plan Core Strategy).

Average house prices in the Borough rose by 6.97% against a national rise of around 5.85%. The average house price is now £183,000, nearly £20,000 more than Manchester. The Royal Institution of Chartered Surveyors is predicting similar rises for 2014.

The Warrington Annual Property Review is commissioned by Warrington & Co., Warrington’s partnership for driving growth.

Generous sponsors of the 2014 report are 871 Cheshire & Warrington LEP, Wire Regeneration and The Mersey Forest. The information was compiled by the BE Group.

Cllr Terry O’Neill, leader of Warrington Borough Council said, “The economic gloom of 2008, thankfully, appears to be starting to recede. At last the national economy seems to be on the way to righting itself.

“Whilst one is wary of being overly optimistic, market confidence has undoubtedly improved and Warrington is in prime position to capitalise on this as we move forward.

As widely reported in the media, numerous independent economic reports indicate that Warrington’s economy is in a very robust and healthy state and this confidence is reflected in the property market. The figures contained within this year’s report in every sector are outstanding’.

Steve Park, managing director, Warrington & Co. said, “Developers and investors have rightly seen Warrington as a safe bet not just this year but since these reports began 16 years ago.

“One thing is for certain, Warrington is no longer a town on the up, it is already there. The task ahead is to maintain and grow that position and re-energise the town centre.

“We are driving forward Warrington’s ambitious growth framework, ‘Warrington Means Business’, to do so. Last year we announced project investment plans totalling £476 million of which £220 million is either built or underway”.

This was posted in Bdaily's Members' News section by Simon Malia .