The Cheshire and Warrington Property Report, managed by Marketing Cheshire, released today applauds the strength and diversity of the local economy in the sub-region.

Highlights of the report, shared by Peter Crompton Director of BE Group who prepared the report for Market Cheshire at an event attended by over 140 people, included details of take-up figures of 3.2 million sq ft (297,375 sqm) in the industrial and distribution property market sector.

This represents around a quarter of the total for the North West, a small uplift from 2011, but in stark contrast to the rest of the North West which saw take-up at a five year low. The national picture also reveals a very different story with the lowest level in a decade.

Peter Crompton said:

“Our property report findings clearly reinforce Cheshire and Warrington’s position as the power-house of the Northwest economy. Both office and industrial are up on the previous year, and with industrial take up at 3.2 million square feet Cheshire and Warrington has secured 25% of the entire North West industrial property sector. And looking ahead, prospects for 2013 suggest a continuing upward trend in industrial, investment and office sectors. Industrial deals already signed in Warrington and Winsford alone equate to half the business generated last year.”

In Ellesmere Port Jaguar Land Rover and horticultural products company William Sinclair each took buildings in excess of 400,000 sq ft (37,000 sqm). William Sinclair’s move ended their national search for the relocation of its headquarters and consolidation of existing operations into a single site.

The first deal secured at Omega played a key part in 2012’s performance and, subsequently, three more deals have been completed since, with a total of 1.45 million sq ft taken. Construction for these is due to start on site this year.

Manufacturing played an important role in the year with large commitments within Cheshire West and Chester. These included The Box Works and Morrison’s (the UK’s second largest fresh food manufacturer) who took buildings in Winsford totalling 307,300 sq ft (28,550 sqm); as well as engineering firm Cygnet Group, in Northwich, Meadow Foods in Chester and leading international vacuum pump manufacturer Busch Group’s move to Crewe.

The office market saw a 20% increase in the level of take-up and number of deals from 2011 and this was experienced in all three local authority areas. Headline rents reached £18.50 per sqft (£199 per sqm) for a letting in Wilmslow town centre but office deals in the sub-region were mainly dominated by out of town locations such as Birchwood and Chester Business Park.

The most significant scheme to start during the year was Waters Corporation Mass Spectrometry HQ at Stamford Lodge, Wilmslow. This will deliver 208,000 sq ft (19,300 sqm) of office, research & development and manufacturing space. It was also announced that Jodrell Bank will be the headquarters for the international Square Kilometre Array radio telescope programme with the 13,500 sq ft (1,250 sqm) headquarters to be located near Holmes Chapel.

The retail sector was more subdued in town centres but Cheshire Oaks, the UK’s largest designer outlet continued to prosper recording double digit sales growth for the third successive year and the highest single day trading figure in their eighteen year existence. Debenhams also announced it would be opening a 60,000 sqft (5,600 sqm) store there in 2013 within the Coliseum scheme.

Plans progressed to revitalise and enhance the shopping facilities and experience of several of Cheshire and Warrington’s town centres. After two years of research the ‘One City Plan’ for Chester City Centre, was approved. The 15-year masterplan contains proposals for commercial and tourism-related regeneration, construction and renovations, which are expected to create a thousand jobs and add £100 million in economic value in the first three years. In addition, Cheshire West and Chester Council has produced a new masterplan for the development of Northgate.

Waitrose also prepared plans for the redevelopment of the Boughton Centre, which they will anchor with their first full-sized store in the city.

Two mixed-use schemes came forward in Northwich, with private developer H20 at Northwich Marina, and Cheshire West and Chester at Barons Quay. In Warrington the council signed a second joint venture with Iliad for the Stadium Quarter, with Wilson Bowden submitting revised plans for a £90 million redevelopment of Macclesfield town centre, to be anchored by Debenhams.

Overall the residential market showed a mixed picture with Warrington seeing completions increasing for the fourth year in a row, exceeding targets by almost 40 percent. Cheshire West and Chester on the other hand saw completion numbers down but the year was seen to be more about putting planning permissions, rather than bricks, in place.

The sub-region’s leisure industry saw two exciting projects announced with £30 million for Chester Zoo’s ‘Islands’’ project to create the UK’s biggest indoor zoo attraction and commitment from Chester East Council who produced a five year investment plan for Tatton Park that includes a £6.5 million new family orientated outdoor adventure attraction, BeWilderwood.

Investment markets saw a quieter year. Retail investments led the way with foodstore deals in Alderley Edge, Congleton, Northwich and Warrington all attracting at sub 5% initial yields. Forward funding of the Brakes building at Omega saw an initial yield of 6 percent – the best for an induatrial property in Warrington for six years.

Barrie Kelly, Director of Client Services at Marketing Cheshire said:

“The report findings clearly show the strength and reliance of the economy in Cheshire and Warrington. Cheshire and Warrington continues to buck the national trends and is clearly the brightest star in the North of England.�?

The report was sponsored by the following property specialists, Goodman, Pochin Property, Omega Warrington Ltd, Aecom, Lamont, Cheshire West and Chester Council, Cheshire East Council and Warrington Borough Council.

Ian Pritchard, Development Director at Goodman said:

“Goodman is proud to be sponsoring this report. It arrives at a time when high demand and a shortage in supply of good quality industrial and logistics buildings in the North West market has caught the eye of investors with a previous southern bias. We look forward to the continued expansion of its investment activity in the North West and Cheshire in particular.�?

Over 100 people attended the launch of the report today hosted by Andrew Donaldson from Cheshire Business Leaders. In addition to Peter Crompton sharing the report findings had presentations from Brain Reay, Director at Pochins, Aidan Manley, Director at Cheshire & Warrington LEP Support Team and Mark Berrisford-Smith, Head of Economics at HSBC UK Commercial Banking.