Centre of Attraction
How Grade A office development is turning the tide for Teesside
The Centre Square office development’s pivotal role in the continuing regeneration of Middlesbrough has been underlined in a major new study.
In October the influential research and policy institute Centre for Cities published “Making Places – the role of regeneration in levelling up”. The report concluded: “Our cities are the engine room of our nation’s growth and helping them fire on all cylinders would go a long way to creating both a fairer nation and a more resilient economy.”
But six years ago Middlesbrough was not firing on all cylinders.
It did, though, feature some of the vital elements which - according to Centre for Cities - contribute towards a vibrant local economy. It had, for example, a large population and a ready availability of workers. It also had access to knowledge, ideas and innovation through the presence of Teesside University and Middlesbrough College.
However – crucially – it lacked the critical mass of knowledge intensive businesses which drive a local economy. A key reason for this was a lack of the Grade A office space which provides the quality working environment they need to attract and retain staff.
Companies had moved out, while others looking to relocate to the Tees Valley rejected Middlesbrough for the same reason and chose out of town business parks instead.
The first phase of the Centre Square project – launched by developer Ashall Projects in partnership with Middlesbrough Council – began to tackle this problem.
They believed the availability of new Grade A office space would attract knowledge intensive businesses back into the town centre.
They in turn would offer good jobs and salaries and kickstart the local economy, with the influx of well-paid workers also multiplying the available spending power in the nearby shops, restaurants and bars.
In a relatively short time - and despite the disruption caused by COVID-19 - Centre Square has turned the tide, with employers returning to the heart of the town and bringing with them waves of jobs.
First, GB Bank announced it was going to establish its headquarters in one of the two new Centre Square buildings.
Other companies followed: Firstsource, XPS Pension Group, Causeway Technologies, Frazer-Nash and two firms of barristers – Dere Street and Park Square.
The insurance giant AXA UK will move into a third building, which is due for completion early next year, and transfer 450 staff to its new HQ.
“What is really encouraging,” said Ashall Projects Managing Director Mark Ashall, “is that in most cases not only are a number of great businesses returning or setting up in Middlesbrough; once they are here they are thriving and expanding.”
Firstsource, for example - a global provider of Business Process Management services - is in the middle of a recruitment drive to bring 150 extra staff into its offices in Centre Square.
Rajiv Malhotra, Head of Europe, Firstsource, said: “We are growing rapidly in the UK and Middlesbrough is a perfect location. The abundance of office space allows us to scale our business, while the location and facilities are attractive to our clients and employees. Our Middlesbrough operation here has gone from strength to strength.”
GB Bank – the first company to signal its intention to move to Centre Square – now employs around 50 people and is continuing to add staff. Its Co-Founder and CEO Stephen Lancaster said: “Centre Square is a fantastic location for GB Bank, allowing us to draw upon the region’s easily accessible transport links and to tap into the talent pool in Middlesbrough and across the Tees Valley. A modern and spacious building, this Grade A office development in the ever growing, vibrant and hugely exciting town centre, is set up to support a great flexible working space for our team.”
He added: “Purpose built, Centre Square is an impressive base for GB Bank’s headquarters, which is a real boost for the North East region, benefiting the people we employ, the wide range of amenities we use, the regional property developers we serve as well as the regional jobs created on the developments we support.
“Having our HQ in the Tees Valley will help us compete with the very best firms to attract and retain talented colleagues as we drive forward our ambition growth plans and support economic growth for the region.’’
There is a similar story at XPS which occupies the floor above GB Bank in 2 Centre Square.
At the end of 2020, before it moved into Centre Square, the company employed less than 80 people. Two years later that number has risen by more than 50 to 131 and it plans to recruit additional staff during the next 12 months.
Developer Mark Ashall says he is optimistic about the future and believes Centre Square and Middlesbrough will continue to flourish, partly as a result of what is happening seven miles away at Teesworks. “The professional and business service companies involved there require somewhere for their staff to work, to stay and live,” he said. “Providing this infrastructure will turbo charge the local economy.”
More details about the plans for the next stage of the Centre Square development are due to be released soon. In the meantime there is still space available: around 5,000 sq ft in 2 Centre Square and 10,000 sq ft on the top floor of the new building, 6 Centre Square.
For more information please contact Mark Ashall directly at mark.ashall@ashallproperty.com or ring him on 01928 280160. Alternatively get in touch with Dodds Brown – the commercial property agent marketing the scheme – on 01642 244130 or e-mail its senior partner Stephen Brown at s.brown@doddsbrown.co.uk