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From the thriving educational sector in Leeds, to the reinvention of Birmingham and Manchester, each city offers unique insights into the evolving economic and real estate landscape. We explore key themes of repurposing, sustainability, and infrastructure development, revealing how these cities are responding to both domestic challenges and global uncertainties.

Cardiff's transformation: Economic shift, infrastructure development, and sustainability

Matt Phillips, Partner, Head of Cardiff Commercial, reflects on the positive landscape in Cardiff:

• City evolution: Over the past 25 years, Cardiff has undergone significant transformation, including the development of a multi-million-pound shopping centre, changes to its skyline with office buildings, purpose-built student accommodation, and residential towers, and the iconic Principality Stadium becoming a central feature of the city.
• Economic shift and real estate impact: The finance and insurance sectors now make up around 19% of Cardiff鈥檚 economy, with major employers like Admiral Insurance, Legal & General, and Starling Bank contributing to the city鈥檚 economic growth and real estate market. Additionally, sectors like Information and Communications and Utilities are driving further demand for office space, bolstered by the city鈥檚 skilled workforce from its universities.
• Infrastructure developments: The redevelopment of Central Square has been transformative, with new offices for BBC, Legal & General, and HMRC sparking wider development and improving the city鈥檚 sense of arrival. This development was a joint venture between Rightacres Property, Legal & General, and Cardiff Council.
• Repurposing and Metro project: The Metro project, a public sector initiative combining buses, trains, and active travel, is aimed at improving convenience, accessibility, and environmental sustainability in Cardiff and South Wales. It is expected to transform local transport within the next two years, making travel more frequent and efficient.

Manchester鈥檚 reinvention: Student retention, high-quality living, and sustainability

David Porter, Head of Manchester Commercial, comments on Manchester鈥檚 growth:

• City transformation: Over the last 25 years, Manchester has experienced significant changes in its landscape, particularly through office developments and high-rise residential apartments. The city鈥檚 skyline has dramatically evolved, with high-rise developments from developers like Renaker, VITA, and Salboy, and the expansion of the city centre beyond the inner ring road. This growth is backed by economic growth and multinational investment, driven by access to a skilled and diverse workforce.
• Student retention and economic impact: Manchester has successfully reversed the trend of students leaving post-graduation through initiatives by the city council, universities, and employers, leading to an influx of businesses. The growth of sectors like professional services, creative tech, and innovation has created a talent pipeline, fuelling demand for residential, retail, and leisure developments. This shift is contributing to the city鈥檚 thriving economy and real estate market.
• BTR market growth: The demand for apartments in Manchester continues to rise, fuelled by affordable living and high quality of life compared to London. This has driven the growth of the Build-to-Rent (BTR) market, with developers offering diverse accommodation options to suit various price points, further supporting the city's growth.
• Repurposing projects: Repurposing old buildings is a growing trend in Manchester, with successful projects like the transformation of Granada Studios into "Enterprise City" and the redevelopment of the former Debenhams building into modern office, retail, and leisure spaces. Repurposing is seen as a sustainable and cost-effective solution, reducing carbon emissions while offering attractive spaces with high-quality finishes and amenities.

Birmingham's re-invention: Repurposing, ESG, and a changing property landscape

Jamie Phillips, Partner, Birmingham Commercial, reflects on Birmingham, a city of reinvention with the motto 鈥榝orward鈥�:

• Repurposing projects in the West Midlands: Several key repurposing projects are underway in the region, including The Drum, Hammerson鈥檚 redevelopment of the former John Lewis in Birmingham into offices, L&G鈥檚 plans for the Rackhams department store site, Coventry City Council鈥檚 conversion of the former Ikea store into a cultural hub, and Valeo Capital鈥檚 transformation of the former House of Fraser in Leamington Spa into offices. These projects are revitalizing redundant spaces and contributing positively to the regional market.
• ESG and market demand: These repurposing projects are driven by a mix of factors, including demand for ESG-compliance and carbon reduction, as well as the need for better workspaces. Refurbishment is becoming more popular due to carbon capture, rising construction costs, and an increasing understanding from occupiers of the benefits of repurposed buildings. Repurposing also helps to bring underused assets back into practical use.
• Private and public collaboration: The projects in the region are a mix of private-sector funding and public-sector involvement. While most refurbishments are privately funded, public interventions such as proactive planning and grants also play a role in supporting these developments.
• Key factors for successful repurposing: Successful regeneration and repurposing projects share common elements, including good design, meeting market demand, ensuring ESG compliance, and delivering value for both owners and occupiers. A focus on functional, efficient spaces is also key.
• Changing property landscape in Birmingham: Birmingham's property market is evolving due to its balanced economy and sectors focused on ESG, carbon reduction, and functional spaces. High construction costs and a new focus on carbon capture are influencing real estate developments. The city is embracing change and reinvention, blending various uses such as education, living, social, and workspaces to create a dynamic and mixed-property landscape.

Leeds鈥檚 thriving education sector: Graduate retention, economic growth, and housing developments

Eamon Fox, Partner, Leeds Commercial, comments on the impact graduate retention has on the city:

• Higher education provision: Leeds has a strong higher education sector, with universities like Leeds University, Leeds Trinity, and Leeds Beckett offering excellent educational standards. New developments, like a campus from Leeds Trinity in the city centre and a new Maths School of Excellence, contribute to the city's growing academic presence. The focus on tech-related subjects, such as data science, AI, and machine learning, is also notable, with over 11,000 students studying in these fields.
• Graduate retention: Leeds is successfully retaining a large percentage of its graduates. Approximately 52% of graduates who study in West Yorkshire stay in the region, and 58% of those who leave return. This is driven by strong collaborations between universities and businesses, making the city an attractive place for graduates to begin their careers.
• Economic impact: Retaining graduates adds depth to the economy in Leeds, with companies like Liberty Global, Markel, and the UK Infrastructure Bank actively seeking highly qualified graduates. Universities, including Leeds Trinity, have formed partnerships with businesses to ensure that graduates are well-prepared for the job market.
• Housing supply: Concerns have been raised about whether the housing stock in Leeds can meet the demand from graduates wanting to stay in the city. However, the availability of housing on the outskirts of Leeds, coupled with new residential developments like Sweetfields (a 1.3 million sq. ft neighbourhood with new homes, office space, and commercial areas), is expected to ease this issue.

The common themes within each region, and each UK Cities DNA Insight Paper, are change and complexity. Stephen Springham, Partner, Head of UK Markets Research, concludes:鈥� The UK economic landscape is changing, stuck between the rock of domestic challenge and the hard place of global uncertainty. By no means negative on every level, the macro-economic backcloth is fraught with complexity, which is likely to intensify rather than recede into anything remotely resembling simplicity.

鈥淯K Cities DNA is something of a call to arms, a showcase for 博鱼体育集团 Frank鈥檚 wider strategic Property Performance initiative 鈥� a unique, multidisciplined, cross-sector team with one unified, sole purpose, namely, to advise on optimising asset performance.鈥�

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