North West commercial property investment on track to be highest since 2007

Investment in the North West commercial property market has reached a record £2.1 billion for the year to date, already outstripping 2011 levels and on track to be the highest level of investment since 2007.

Investment in the third quarter of the year was £722.36 million, a 131% increase on the same period last year according to new research by national commercial property consultancy Lambert Smith Hampton.

North West activity is having a significant impact on total investment for the UK regions which totalled £6 billion in the past quarter, the highest level since 2006.

It is also the first time that investment in the regional markets has outstripped inflows into London since the start of 2011.

This quarter, there were some major transactions in the region across all sectors.

These include the £75 million purchase of 1 Piccadilly Gardens in Manchester city centre by Legal and General, the £72 million sale of Robin Retail Park, Wigan, to TIAA Henderson Real Estate and the £28.87 million DHL warehouse at XL Business Park in Skelmersdale by Tritax Big Box REIT plc.

Abid Jaffry, director and regional head of Capital Markets at LSH commented: “Competition among investors continues in the region for both prime assets and those that offer add value opportunities.

“The North West is set to enjoy a record year in terms of returns and investment volumes.

“Investment in the region has escalated significantly with improved confidence on values and the strengthening occupier markets. In addition, the returns being offered in some of the secondary markets remain attractive to investors wishing to take advantage of the higher yields and positive occupier sentiment.”