“The Subplot: Property Market Update in the North of England and North Wales”

Commercial property investors in the North of England and North Wales may finally have reason to celebrate as it looks like the “long Covid” period for the property market could be coming to an end. After four years of uncertainty and repricing, it appears that the market is stabilizing and presenting attractive opportunities for investors.

Private debt investors are moving in quickly, recognizing the potential for growth as inflation eases, interest rates decrease, and market sentiment improves. This influx of new money is resulting in a flurry of deals, particularly in the city residential sectors of Manchester and Leeds. From funding for 556-apartment schemes to new debt strategies by major players like Grosvenor and Apollo Global Management, the market is buzzing with activity.

However, not all sectors are faring equally well. Regional offices are facing challenges, but some investors like Investec are still eyeing opportunities in this space. Non-performing loans are also presenting restructuring opportunities for investors, as a significant portion of outstanding UK commercial property loans are set to mature soon.

In Blackburn, a long-standing redevelopment plan anchored by a supermarket has hit a roadblock as Morrisons decides to stay put, highlighting the challenges in the current supermarket development landscape. On the other hand, dated office blocks like Norfolk House in Manchester are seeing a resurgence in interest as investors look for refurbishment opportunities in prime locations.

As the commercial property market in the North continues to evolve, investors and developers are advised to act quickly to capitalize on the current market dynamics. The end of the “long Covid” period may be in sight, but opportunities won’t last forever. For more insights and updates on the North’s property market, stay tuned to The Subplot.