The government is to create three civil service super-hubs in Manchester, Leeds and Liverpool totalling 1.8m sq ft.
The hubs will be a catalyst for regeneration and fuel the government’s Northern Powerhouse initiative.
While some requirements will be driven by the consolidation of regional offices, a significant proportion will come from the Whitehall Campus, SW1.
The government has pledged to shrink its Whitehall presence owing to costs, which are around three times higher than elsewhere.
Based on the government’s target of 86 sq ft per employee, the hubs would house almost 21,000 staff.
The plans will be welcome news for the regions after previous schemes to move thousands of civil servants north dating back to 2004 were shelved. They form part of the Government Property Unit’s target of raising £5bn from property sales by 2020 and cutting offices by 75% by 2023.
The three hubs will each include one of 13 consolidated HMRC bases being set up around the UK. HMRC is leading the charge on the super-hubs as it approaches the end of a 20-year sale and leaseback deal with Mapeley Estates to manage most of its estate.
The tax authority is already in advanced talks to take 180,000 sq ft at Stanhope and Schroders’ Ruskin Square in Croydon, south London.
Manchester has received the lion’s share of the government’s new requirement, with a search launched for 950,000 sq ft.
HMRC is expected to make up 320,000 sq ft of that space, with the Department for Work and Pensions taking 260,000 sq ft and another department occupying the remainder. Potential locations include Hermes and Co-operative Group’s NOMA, the Mayfield regeneration quarter, Patrizia’s First Street, and Bruntwood and Select Property Group’s Circle Square.
In Leeds, the requirement totals 450,000 sq ft with the potential for an extra 200,000 sq ft. As well as HMRC, the Department of Health is expected to take a large chunk of the space, consolidating from existing offices in the region.
Schemes being considered are understood to include MEPC’s Wellington Place, Stirling Investments’ redevelopment of the former Yorkshire Post offices, and Vastint’s former Tetley Brewery site.
In Liverpool, the government is looking for around 400,000 sq ft for departments, again including HMRC, with Peel Group’s Liverpool Waters and Liverpool City Council’s Pall Mall scheme potential contenders.
Andrew Carter, deputy chief executive of Centre for Cities, said the impact of the hubs would depend on the types of jobs created. “If they bring high-skilled, senior jobs to those cities, that could make a significant difference in terms of boosting wages and helping to attract high-skilled jobs from other sectors. But if it is a case of creating lower-skilled, administrative-type jobs, then the impact will be relatively limited.”
JLL is advising on the hubs, which are required to be ready for occupation between 2019 and 2023.
Super-hub requirements
Timescale: 2019-2023
Manchester: 950,000 sq ft
HMRC: 320,000 sq ft
DWP: 260,000 sq ft
Other departments: 270,000 sq ft
Leeds: 450,000 sq ft
HMRC: 200,000 sq ft
Department of Health and others: 250,000 sq ft
Liverpool: 400,000-500,000 sq ft
HMRC: 200,000-250,000 sq ft
Other departments: 200,000-250,000 sq ft
• To send feedback, email louisa.clarence-smith@estatesgazette.com or tweet @LouisaClarence or @estatesgazette
