OBI has completed a letting of 26,359 sq ft at St James’s Tower to global workspace provider Regus.
Regus has signed a deal to take half of the newly extended ground floor, all of the new first floor and the existing fourth and fifth floors.
It comes as refurbishment works to St James’s Tower on Charlotte Street in Manchester city centre continue, following a £3million investment by the building’s owner.
Works will complete in Q1 of 2020, with real estate consultancy OBI project managing the asset.
The letting to Regus follows the commitment by existing occupiers Fletcher’s Solicitors and Pimberly to take further space on the upper floors of St James’s Tower.
OBI, which has asset managed St James’s Tower since 2012, said the recent extension of the ground and first floor ‘podium’ levels has increased the overall floor area to 87,114 sq ft.
Will Lewis, co-founder of OBI, said: “The £3m investment in St James’s Tower is massively changing the external appearance while significantly improving internal spaces.
“Securing Regus is particularly pleasing, given that this deal has been done before works have been completed. Regus offers the flexibility and amenity that the modern-day occupier is seeking and is a great addition to the building.
“The Regus brand is a highly respected operator that provides flexible workspace solutions and this major deal also demonstrates that the rise of managed workspace is very much continuing.”
Matthew Aubrey, Development Director UK & Ireland at Regus’ parent company, IWG, said: “We are delighted to be partnering with OBI to open this new site in Manchester. Right in the heart of the city centre, it’s ideally placed to serve the city’s burgeoning business community.
“Our serviced offer provides everything a business needs, including flexible expansion space and meeting and conferencing facilities, and we are very much looking forward to opening across four floors within what is a fantastic building.”
Richard Morris, UK CEO of Regus, says: “We’re delighted to have signed this deal as St James’s Tower is located in a very prominent location in the heart of Manchester city centre.
“Demand for flexible office space is growing rapidly – our research shows that 73% of Brits believe that flexible working is the ‘new normal’, with 53% of professionals globally now working remotely for at least half their working week. People are recognising that they are far more productive and successful in a dynamic working environment, while businesses are waking up to the financial and strategic benefits. Regus is helping to supply this demand and drive a workspace revolution in Manchester and beyond.”
OBI confirmed that there is 5,000 sq ft of new ground floor retail / leisure space which can be made available from November this year and is capable of being subdivided for a range of uses. Following the recent letting success there is only 2,979 sq ft of refurbished office space remaining on the 7th floor of St James’s Tower.
The project works on St James’s Tower are being undertaken by Russell’s Construction.
Metis and Savills are leasing agents on the ground floor vacant space. CBRE represented IWG.