BNY takes entirety of Manchester’s 4 Angel Square
MEPC will let 200,000 sq ft of office space to global financial services group Bank of New York Mellon Corporation, the oldest bank in the United States.
MEPC’s 4 Angel Square is part of Manchester’s NOMA area, which has recently become a hotspot for high-valued companies to set up offices with Amazon and The Co-op both in the neighbourhood.
BNY’s move is being considered as the largest regional ‘Big 6’ city deal for four years, according to JLL lettings data.
The lease agreement is understood to be towards the top end of the market. In Manchester, the current headline rate is around £44/sq ft.
Movement of staff to the office is expected to take until 2026, with the Manchester team arriving from two different locations: 3 Hardman Street in Spinningfields and One Piccadilly Gardens.
BNY will be the only occupier of 4 Angel Square, an 11-storey, net zero operational building.
The office boasts several strong energy efficiency ratings, including a NABERS five-star design for performance target rating and BREEAM Oustanding, as well as highly connected internet and satellite services.
Sean Turner, Manchester site executive at BNY, said that the city was a “key location” for the bank.
“Our high-performing teams will come together in a prime city centre office, providing a state-of-the-art environment that enhances client experience, culture, collaboration, and innovation,” he said.
Mayor of Greater Manchester Andy Burnham described the letting as “a major investment” for the city region.
“It shows we have the connectivity, liveability, and access to talent to attract big international companies, bringing more jobs and opportunities for Greater Manchester residents,” Burnham said.
MEPC’s Nontokozo Mnisi, Manchester City Council’s Becca Heron, Colliers’ Peter Gallagher, BNY’s Nikki O’Sullivan, MEPC’s Dan Hyde, Paul Pavia, and Dominique Murray gathered to celebrate the lease signing. Credit: Jason Lock
Peter Gallagher, who works with the national offices & development team at Colliers, acted on behalf of MEPC and called the letting a “significant wake-up call” for the market.
Gallagher said: “Manchester leads the regional ‘Big 6’ in average inward investment take-up for a reason – it has always offered large corporate occupiers plenty of options.
“However, that dynamic could be about to shift as we predict a scramble for what remaining space there is left in the city.”
Chris Mulcahy, director at JLL acted for BNY and said: “Being able to acquire the whole of 4 Angel Square was a very rare opportunity that could not be missed and it’s down to the collaborative approach taken by the parties that made this happen.”
“Occupiers will need to start planning much earlier than they have become accustomed to,” he added.
Expect more news to come from NOMA in the coming months.
Commercial director at MEPC Paul Pavia said: “With planning consent already in place for 2 and 3 Angel Square – the next two office buildings – NOMA is entering a new period of growth, as underlined by this landmark letting agreement, and we look forward to the future with confidence.”
Wow huge let. I remember some shouting about how the office was dead. More in hope than anticipation I think. Anyway great news and more to come from what I’ve heard.
By Bob
Very positive news once again for Manchester. Long may it continue
By Steve
Minecraft has a lot to answer for.
By PrestonBrummie
But there were people on this comments section saying that the office market and the city would die because of the pandemic. Those people can’t surely be wrong can they
By Anonymous
Genuinely delighted for Manchester and the NW in general this is a superb high quality letting that will provide great career opportunities and no doubt give confidence to other quality businesses to consider Manchester . I personally at the same time hope the LCC planners in particular along with the head of LCC look at such positive developments and reflect on how their policies and attitude have negatively impacted on Liverpool we have fallen so far behind , sadly its our political leaders to blame.
Good On Manchester particularly Andy Burnham
By Paul M - Woolton
Nice building but if there’s a drawback of that location it’s the absence of human scale streets to explore and socialise in that an office in the very centre benefit from.
By Anonymous
This will hopefully trigger more big names and turn this area into a thriving business district.
By Elephant
@Anonymous – without knowing how many desks are in the building who can say. Hybrid working isn’t going anywhere
By CG
The office is dead.One big letting does not mean the long term trend that office market is dying is not wrong Sorry but the office is going same way as the mill and a good thing because the modern office is a soulless existence for people unfortunate enough to work there.
By Trever Rabin
How much space are they vacating? bad times for Piccadilly Gardens
By Anonymous
The difference is that people used to work five days a week in the office, now they only work three.
By Anonymous
so, a net increase in office space of 62,000 soft. Still impressive and good for Manchester, but not quite as giddy as 200K sq.ft.
By Ducie Bridge
Some very angry people at Manchester being successful. This attitude is much more ugly than modern architecture.
By Well done Manchester
It would be useful for the article to confirm the net increase in footprint for BNYM from existing units to understand the impact on the Manchester market. Are they just trading in older space, without the hassle of refurbishment whilst in occupation, or is there a major expansion?
By Builder
Manchester isn’t successful, health outcomes, education, poverty, deprivation, crime are all really bad. These are the basic metrics.
By Anonymous
This transaction, along with the recent ARM transaction at St Michaels, is another significant boost for Manchester and the sub-region. Anywhere else outside of London would die for either of these two transactions. Well done to all involved.
By Anonymous
This is a great move for BNY but bear in mind this isn’t a new uptake in the city as BNY have been here for years, split over 2 sites as stated in the article, and as I’m related to a BNY employee, I can confirm that hybrid working is firmly established.
By Planning periscope
If you’re basing it on basic metrics then Manchester is actually doing pretty well compared to other major cities.
However, this is a site dedicated to construction, planning and development. If you want to throw mud at random metrics, stick to the MEN/Liverpool Echo.
By Trolls
This is a company leaving the centre to move to the fringes, I don’t see the positive
By Anonymous
Sorry I don’t get that this is “a site dedicated to construction, planning and development.” I would argue that this is a site now delivering an opportunity to retain the existing employment base of BNY in Manchester and adding to it. Fantastic result.
By Anonymous
5 years rent free on a 10 year lease is the rumour in the market
By Norman
Sounds like a big deal but difficult to judge without net floor area figures considering they will vacate Hardman Street and One Piccadilly Gardens. I guarantee like every large office-based company they will be downsizing to save costs due to rise of WFH 2 days a week.
By Anonymous
TBF parking is probably better here and we won’t have to navigate the traffic on Deansgate and Piccadilly
By Anonymous
It’s a shame what was knocked down to build another glass box
By Anonymous
That’s full on good news… Hopefully they can get going on 2 and 3 Angel Square now, albeit I hope they improve the designs for those two…
By Dr B
This will really help this area of town to develop. The next thing that’s needed is some bars and restaurants.
By Digbuth O'Hooligan
Great news for Manchester but I would love to know what the true net rent is.The incentives must have been very substantial.Same for any top ‘headine’ and always has been.
By Real Deal
I agree with Trolls. Let’s talk about metrics. The City of London, is next to Tower Hamlets, the poorest borough in London. Successful people moved to Tower Hamlets, when they couldn’t afford Camden and Islington, and lifted the economy there. Collyhurst,or Victoria North, is currently going through 1 billion pounds worth of redevelopment. I rest my case.
By Elephant
@Norman Have a day off, Norman. I think you need to reassess the sources for your rumours!
By Anonymous
There’s hardly anybody working at Amazon
By Anonymous
@Anonymous, I took Saturday off – thank you! BNY literally walking all the way to the bank with their rent free, kerching!
By Norman Again