The city of Manchester, N.H., once a world class manufacturing and innovation hub during the Industrial Age, has regained its mojo to become the financial, technological and professional service center of northern New England. The Queen City's transformation has been remarkable.
Manchester's make over was not by mistake. Over the past few decades, community leaders created flexible zoning in the Central Business District and Millyard, modernized the Manchester-Boston Regional Airport (see www.MHTrealestate.com) and created two of the nicest and most successful entertainment venues in the region -Verizon Wireless Arena and Northeast Delta Dental Stadium.
Those who come to Manchester to enjoy the entertainment scene help fuel a vibrant downtown with low vacancy and a wide variety of retail and food options. The construction of Elliot Hospital's River's Edge urgent care facility and the downtown Market Basket have been homeruns for the city and have extended the CBD to South Elm.
Manchester's city scape is dominated by the historic Amoskeag Millyard (see www.nhmills.com) comprised of 30 buildings and over 3.4 million s/f. Filled with high tech companies, light industrial/R&D users, retailers, apartments and educational entities, I'm certain that if more parking existed, there would be zero vacancy in the Millyard.
With such leading companies as DEKA, Dyn, AutoDesk, RiverStone Resources, CCA Global, Anthem, Next Step Bionics Prosthetics and SNHU's nationally recognized online program, among many others located in the CBD, demand for housing from young professionals is red hot. Also home to about a dozen colleges and universities, an immense need for new units in the Manchester CBD exists. It's a critical ingredient to help ensure New Hampshire retains young professionals in our economy.
Colliers International | New Hampshire recently surveyed 10 multifamily properties in the CBD of 20+ units and found an incredible vacancy rate of less than 1%. Of a total sample size of 890 units, one bedroom rents range from $800 to $1,390 a month and two bedroom units range from $900 to $1,825 a month.
Rising out of the red bricks of the Millyard on the Merrimack River are a half dozen office towers on Elm St. (Manchester's main downtown street) that dot Manchester's skyline. Buildings at 1750 Elm, 1000 Elm and 1650 Elm have all seen substantial investment, resulting in lower vacancy. Manchester's office vacancy has improved remarkably from the recession of the late 2000s.
The recent sales of 900 Elm and 1155 Elm demonstrate strong demand in the Manchester CBD from local and regional investors for cash flow properties.
The venerable 875 Elm - New Hampshire's first office tower originally built by Amoskeag Bank in the early 1900s - is the last high rise redevelopment opportunity in the market. 875 Elm encompasses an entire city block with 140,000 s/f in a 10 floor high rise attached to a 4 floor low rise building. It includes a 270 space, income-producing parking garage and a credit tenant in place. Its two illuminated roof top signs are visible for miles.
Manchester has a great story with many opportunities for companies and investors. Come visit soon.
Jim DeStefano is vice president of sales & marketing and a principal at Colliers International | New Hampshire, Manchester, N.H.