< Previous10 Business Link www.blmforum.net COMMERCIAL PROPERTY S ignificant developments are cropping up throughout Yorkshire, but the past month has seen a particular wealth of milestones achieved in Leeds, showcasing the attractiveness of the city to investors. An 11-storey apartment complex being built for property developer Rise Homes recently topped out, with contractor Clegg Construction holding a ceremony to mark the occasion. Spinners Yard is a 185-apartment, U-shaped, build-to-rent scheme in Regent Street in the Mabgate area of Leeds city centre. Featuring a mix of studio, one, two and three-bedroom apartments, the development is due to be completed in 2025. Clegg Construction operations director, Darren Chapman, said: “We are very pleased to have reached the key topping out stage for this development. This will allow us to continue adding the external walls and glazing up the building, followed by the internal fit-out. Spinners Yard is regenerating brownfield land and will breathe new life into the area, providing a desirable residential development with a range of properties to rent.” The ground floor of Spinners Yard will incorporate a plant room, enclosed parking for cars, motor bikes and cycles to one half with the other containing the entrance lobby and reception, the centre management office, a lounge, break out and work spaces, and a gym. Two staircases/lift areas provide access to upper residential floors. The first floor will incorporate a residents’ garden space with another roof garden on the tenth floor. At an earlier stage of development, plans for a new hotel and gym were given the green light as part of the regeneration of the area around Leeds Kirkgate Market. Leeds City Council submitted a planning application in August for the scheme on the George Street side of the Grade I listed market building, and the application won unanimous support at a meeting of the council’s city plans panel. The council has already agreed a pre-let lease with hotel operator Premier Inn, and the development will include a council-run public gym. Councillor Jonathan Pryor, Leeds City Council’s deputy leader and executive member for economy, culture and education, said: “The plans panel’s support for the George Street scheme Business Link reflects on major property milestones in Leeds from the last month.www.blmforum.net Business Link 11 COMMERCIAL PROPERTY 13 Á represents another important milestone in the regeneration of the area around Leeds Kirkgate Market and beyond. Leeds city centre is already a vibrant, attractive place to visit, but we want to make it even better – and the new hotel will help us achieve that aim, providing a stylish linking point between Vicar Lane, the Eastgate roundabout and Quarry Hill. The scheme also underlines our commitment to ensuring the market retains its position as one of the jewels in the city’s retail crown.” The site earmarked for the six-storey development is owned by the council and occupied by a number of vacant low- rise shop units. The hotel will fill the top five floors of the new building with 143 rooms as well as a bar and restaurant for guests. The ground floor will host a range of commercial units and the council-run gym. The hotel will create approximately 50 full and part-time jobs locally once operational, with around 80 jobs being supported during construction. Meanwhile, Caddick Group’s SOYO development in Leeds’ cultural quarter has secured planning approval for the final phase of the new neighbourhood. Blocks A and D have won dual approval, marking a major step forward for the project. Designed with sustainability front of mind, the blocks will bring student accommodation to the city centre and SOYO Block AArmstrong house Armstrong House, Armstrong Street, Grimsby, North East Lincolnshire DN31 2QE Tel: (01472) 310301 Email: s.fisher@blmgroup.co.uk Superb Location - - Close to the ports of Grimsby & Immingham - Great motorway links - Close to the town centre Secure off street parking High speed internet availability A range of affordable office sizes 3 3 3 3 Last remaining office suites Prime location in Grimsby Offering a prime position in Grimsby, Armstrong House on Armstrong Street is ideally located. Close to the ports of Grimsby and Immingham, motorway links and the town centre, off-street parking is also available for all staff and visitors, meaning it’s convenient too. Our spacious, welcoming offices are located on the ground floor and are both secure and CCTV-monitored, giving you the ultimate peace of mind. At Armstrong House, when it comes to affordability and with a range of office sizes there are opportunities for all types of business. If you require virtual office services, prices start from just £15 per month. For more information, or to discuss your office requirements call 01472 310301.www.blmforum.net Business Link 13 COMMERCIAL PROPERTY will be comprised of a mix of studio and cluster flats. Block A will bring 360 student units to the neighbourhood, adding to the 291 units due to be delivered at Block D. SOYO began construction in 2019, bringing in a new mixed-use development to the Quarry Hill area. The first two buildings, Moda New York Square, opened in 2022, comprising 551 studios and apartments. The latest buildings, Madison East and Mercer West for Hestia, are due to open to residents in the New Year. Furthermore, property investor and developer, Town Centre Securities PLC (TCS), has unveiled the next phase of evolution for the Merrion Centre in Leeds, with plans that are set to transform the 1m sq ft mixed used scheme. For the first time, the Merrion Centre is looking to introduce residential accommodation to its offering that has been part of the retail, office and leisure landscape of Leeds for the last 60 years. TCS’ planning application introduces two new buildings within the Merrion Centre designed to deliver 1,110 student bedrooms, comprising a range of studios and cluster bedrooms. The student accommodations will be complemented across both buildings with a range of amenities, including residents’ lounges, co-working spaces, meeting spaces, cinema, gym, karaoke room, 191 secure cycle spaces and external terraces. The development would involve the conversion of the 13 storey Wade House, a 1960’s office building which has been predominantly vacant since May 2021. This sits adjacent to a new 35 storey tower, on the site of 100MC which was previously consented as a new build office scheme. Finally, Vastint UK has revealed details of plans for the iconic Tetley building as it looks to safeguard the landmark for another century. The proposals for the 92-year-old site include the retention of the art deco façade and opening up the basement and ground floor for new food, drink and event spaces alongside 1,212 sq m of office space. The plans also involve roof terraces, a cellar bar and restaurant, and the retention of many historic features, such as the war memorial and Tetley Boardroom. The fully revitalised Tetley Building, which Vastint UK acquired from Carlsberg in 2022, will be the crown jewel of the Aire Park district, which includes a new 3.5- hectare city centre green park, up to 1,400 new homes and 85,000 sq m of office space. Simon Schofield, head of development north at Vastint UK, said: “The Tetley is an iconic building within Leeds and we’re excited to finally reveal our plans for its future. As custodians of this important piece of the city’s history, we have been working hard with our architects Supervene and Enjoy Design, Leeds City Council and others to look not just at how we preserve this beautiful building but continue its evolution and ensure it remains at the heart of both Aire Park and Leeds’ South Bank for another 100 years… We’d like to think that Joshua Tetley would be impressed by what has become of the site he purchased for £402 in 1822.” A planning application is expected early in 2024, with the ambition of the building reopening to the public in 2026. Image courtesy of Leeds City Council The proposed hotel on George Street, looking west. TCS’ plans at the Merrion Centre 14 Business Link www.blmforum.net 2024 BUSINESS PREDICTIONS © stock.adobe.com/Pakinwww.blmforum.net Business Link 15 2024 BUSINESS PREDICTIONS Barry Jackson, investor and head of BGF in Yorkshire and the North East As 2023 has demonstrated, despite the subdued nature of the market, there are still high quality deals to be done, with BGF investing in seven new Yorkshire and North East companies throughout the year. This comes from having a confidence in the prospects of the growth economy and supporting dynamic, innovative and exciting businesses to achieve their full potential and deliver consistent returns for shareholders. Given the level of activity we have seen in the region in 2023 – with deal volumes generally remaining relatively steady, particularly in the smaller end of the market – we are positive about the M&A market in 2024. There are clearly a number of deciding factors still at play that will influence activity in the coming months, but we are hopeful that lowering inflation and stable interest rates will help to ease challenges and concerns. While deal values dropped significantly in the region between Q3 2022 and Q3 2023, where there is scarcity of good deals, you tend to see a lot of competition for those businesses with best-in-class assets that still command premium prices. As such, this will impact the broader market and everybody will have to work harder to get deals done. Looking ahead It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead. 16 Business Link www.blmforum.net 2024 BUSINESS PREDICTIONS Louisa Harrison-Walker, CEO of Sheffield Chamber of Commerce Without the assistance of a crystal ball it’s tricky to say what curve balls might come our way in 2024. I would like to think we have had our fair share of challenges with Brexit, the pandemic, energy price hikes, inflation, and the effects of long term austerity measures. We have tested businesses more in the last few years than we have in the previous fifty. If nothing else, let’s hope that 2024 is more of a return to normality and just a bit more ‘business as usual’ – please! We look after private, public and third sector organisations within our roughly 1000 business membership, so we see the challenges and opportunities played out in micro-SME’s and huge anchor institutions, and across all sectors. The one common denominator is people, skills, talent and access to good employees, and being part of a local business community can help you grow your people, your markets and your networks. We know it’s been tough to recruit in 2023 and I can see that trend continuing in 2024 for those that don’t get serious about competing for talent. Prior to the pandemic and the rise in flexible working you were in competition with employers in your city or region, now, generally speaking, you could be in competition with employers anywhere in the world. The organisations that offer flexibility in the hours people work, a broad range of employee benefits, healthcare, mental health support, genuine support for professional development implemented by a good manager, strong social values and a good CSR programme, will have a competitive advantage. You don’t build a business, you build people and they build your business, and they have more choice now than ever before. That’s what we need to be careful about in 2024. Michael Porter, senior director, CBRE’s Valuation team in Leeds CBRE’s 2024 market outlook report indicates a nascent economic recovery expected in the second half of 2024. Investors are currently cautious and this sentiment is likely to continue into the early months of 2024. However, confidence should return once interest rates start to reduce and inflation declines. The Bank of England has stated that the base rate is expected to remain elevated during 2024, although they are conscious that delays in rate cutting would dampen the general anticipated economic recovery over the next couple of years. Investors interested in the Yorkshire market are likely to continue to prefer the living sectors which have, to date, been more resilient to recent economic pressures, and industrial assets are also likely to be favoured as an investment opportunity. Commercial real estate will likely be more attractive in 2024, with investment prospects set to improve as value declines have stopped in some sectors and slowed in others. Pricing across sectors appears to be stabilising with adjustments, particularly in the industrial and office sectors largely having taken place in the latter part of 2022 and throughout 2023. It is also expected to be a year for opportunistic equity buyers or those with lower debt requirements and whilst a significant number of loan refinances are due during the year, the cost of debt is expected to fall and should improve the viability for buyers utilising debt. With higher yields now applying to office and retail stock, these assets could be favoured by contracyclical investors, seeking greater returns and accepting higher levels of risk for doing so. www.blmforum.net Business Link 17 2024 BUSINESS PREDICTIONS Shakeel Adli, CEO at Zunikh Zunikh currently has an office in Sheffield and as such is constantly monitoring the market in Yorkshire (and nationally given we operate nationwide). That said, we believe it is important to look at local market predictions in the context of the national (and even international) landscape. This is because it is often the case that micro market conditions are driven by global events. Noting that 2023 has been a particularly unusual year following on from Covid and with the continuing war in Ukraine, we expect that 2024 will see markets begin to settle. We can already see inflation beginning to ease and with this we expect that interest rates will slowly come down. Within the property market we anticipate that this will ultimately result in private sales picking up as consumers recover from higher costs of living and the cost of borrowing comes down. This will be aided by likely reductions in the costs of building and building materials, again attributable to the easing of inflation which may bring the price of stock down in the short term. Markets like Sheffield and South Yorkshire should benefit from this and housing prices may start to increase fractionally as demand for stock grows. We also anticipate that build-to-rent schemes will continue to be popular amongst institutional investors in places like Sheffield and in the region generally given the strength of the rental market, however yields may start to drop as more consumers return to the private sales. Our outlook for 2024 is generally positive and we expect Sheffield and the surrounding region to reap the rewards of this in due course. Matthew Ridsdale, founder, Cannon PR AI was one of the hot topics in the PR industry in 2023 and I expect to see more businesses embrace the technology as it matures and becomes more accessible during the next twelve months. With the prospect of offering many new possibilities and even helping to save time when it comes to crafting content, AI is something which can’t simply be ignored. However, whilst typing in a few terms can produce a string a of social media posts, blog entries, white papers and even press releases within a matter of seconds, there can be ethical and reputational risks in doing so. AI will undoubtedly play a greater role in shaping the way marketing and PR content is produced in the future. The challenge facing communications teams will be how the technology can be embraced both as a time-saving tool, whilst crucially maintaining the ability to convey authenticity and credibility. Creativity has always played a vital role in helping a story to resonate with its target audiences, especially when it comes to conveying complex or sensitive information. I’ve yet to meet a computer with a conscience and so I feel fairly confident that PR practitioners will continue to have the upper hand… for now. Looking ahead to the news agenda in 2024. I suspect there will be one subject that will dominate the headlines for much of the year: the prospect of a general election. Will it happen? Won’t it happen? Will it be early? Will the Prime Minister decide to wait until there is better news to share about the ailing UK economy? Depending on when the election is called, and if indeed the Prime Minister waits until December 2024 to send voters to the polls, it could end up being a talking point for much of the year. Whether Labour will sweep to power with an emphatic victory akin to 1997, or the Conservatives defy all the current polls to secure another term, remains to be seen. 18 Business Link www.blmforum.net PRODUCTIVITY & EFFICIENCY IN MANUFACTURING SPOTLIGHT Efficiency and productivity, the twin pillars of successful manufacturing operations, go above and beyond the boundaries of good business. As just one example, consider the commitment of an electronics manufacturer to producing high-quality circuit boards. Their dedication will also involve optimising production processes, minimising waste, and reducing costs—a testament to the universal objective of achieving more with fewer resources. Tech itself has become a force to be reckoned with in these matters. A perfect example of the interlinked and sometimes cyclical goals of manufacturing, industry is helping itself usher in increased efficiency across contemporary manufacturing. Take any number of manufacturing plants in which robotic arms can execute repetitive tasks. Technologies such as these taking the weight of manual labour means human workers are freed to concentrate on intricate and value-added activities. The integration of robotics not only enhances precision, but also accelerates production speed, showcasing the transformative power of technological innovation. However, before more material solutions can be brought in, the correct principles must be in place first. Through setting up systematic organisation, and eliminating overproduction or overprocessing of products, workflow is sped up, lead times reduced, and overall operational efficiency improved before you splash out on expensive equipment. Quality control remains paramount in manufacturing, assurance synonymous with operational efficiency and building a trustworthy name. But human eyes for detail and judgement are still essential, and tech cannot simply be launched into disorganised processes and fix every issue. Work should always be done to ensure operations are as streamlined as possible through human cognition and creative efforts. Efficient manufacturing hinges on a well-orchestrated supply chain which maintains a steady flow of raw materials and minimised downtime. But simultaneously investing in employee training and engagement yields significant gains in productivity. Engaged employees are more likely to propose process improvements, fostering continuous enhancement where the human element becomes a driving force in efficiency. edge Chasing enhanced productivity and efficiency is a never-ending journey, but one that’s fundamental for sustaining the competitiveness of a diverse range of businesses. 20 Áwww.blmforum.net Business Link 19 PRODUCTIVITY & EFFICIENCY IN MANUFACTURING SPOTLIGHT © stock.adobe.com/xiaolianggeNext >