Salford confirms long-awaited first tenant at £40m 100 Embankment
Flexible workspace provider X+Why has inked a management agreement for 28,600 sq ft within the building, becoming its first occupier more than 18 months after construction of the council-owned office block completed.
X+Why has sites in London and Birmingham. The space within 100 Embankment is the company’s first foray into the North West.
Rupert Dean, chief executive at X+Why, said: “We chose 100 Embankment because it’s in a great location and has a wealth of amenities right on the doorstep for our members.
“There is a real opportunity right now for businesses to embrace the changing role of the office and we’re looking forward to bringing something dynamic and exciting to Salford and Manchester.”
Salford City Council has also agreed to pay for X+Why’s fit-out costs at the 166,000 sq ft Cathedral Approach building, which could rise to £3.5m.
A decision notice approving the management agreement and fit-out funding said: “The proposals will support the efforts to secure occupiers and tenants in 100 Embankment, [which] will support the council’s initial decision and investment to acquire the building in order to deliver direct and wider regeneration benefits to both the local area and the city generally.”
Salford City Council forward funded the construction of the £40m 100 Embankment, which was developed by Ask and Tristan Capital Partners.
Since then, the city council had struggled to attract tenants to the building, which has remained unoccupied since it was completed in August 2020.
Feedback from parties that viewed the building prompted Salford to hunt for a flexible operator, “to help secure future lettings within the remainder of the building”, according to a council report.
“The delivery of a flexible workspace offer at 100 Embankment will provide animation, activity and vibrancy to the reception, ground floor and roof terrace of the building in order to support and secure more traditional office occupiers in the remaining part of the building,” the report added.
The neighbouring 101 Embankment, owned by investor M&G, completed in 2015 but is largely vacant; Swinton occupies 60,000 sq ft, leaving 106,000 sq ft still available.
CBRE and Cushman & Wakefield are the joint agents on 100 Embankment.
Why mostly empty?
By James Yates
Wasn’t there a guaranteed rent paid by Salford City Council if this was left unoccupied… which it then was?
By Guaranteed Rent
Strange that it’s taken so long… Could it possibly be that private suppliers in the industry have not been entirely honest about the supposedly stellar terms they achieve in Manchester? Leaving a public sector body on the hook for highly attractive guaranteed terms that would never be achieved in real life?
By Jeff
How many social housing units could have been built for that money ?
By Jonsmith
2 years on and all we have is coworking management agreement for 20% of the space, and the council are paying all fit out costs.. what a disaster. have to feel for the council.
By hmm
Jeff…No.
By Anonymous
@JonSmith 5, maybe 6?
By Cal