Grosvenor, the property company controlled by the Duke of Westminster, has broken ground on the £40m redevelopment of The Hive in Manchester's Northern Quarter, a move that takes the group's directly managed workplace model outside of London for the first time.
The historic Lever Street site, spanning 78,000 sq ft, will be reimagined as a destination office building with 25,500 sq ft of flexible space and a visitor-led offer. The ground-floor units fronting Lever Street will house a restaurant and bar, both run by what Grosvenor describes as “Manchester's best-known names”, with a launch penciled in for autumn 2026.
On Grosvenor's UK property side, the project is the most visible test yet of a regional strategy launched in 2020 that now covers around 500,000 sq ft in Manchester, Birmingham, Bristol and Leeds. The portfolio is currently 90 per cent let, a figure that compares favorably with the regional office market which is struggling with mixed performance and a run away from quality.
The group has appointed x+why, a B Corp certified workplace operator, to run over 22,000 sq ft of flexible floors under a management agreement. The agreement extends a partnership that begins in 2023 at Fivefields, Grosvenor's social impact workplace in Victoria, and reflects a growing desire among traditional landlords to connect technology to their buildings rather than giving space to third-party suppliers that are flexible in traditional leases.
The interior will be designed by x+why's in-house team, whydesign, with a deliberate nod to local art. Pieces by Manchester-based furniture designers and artists including Aiden Donovan, Jesse Cracknell, Matt Dennis and Mima Adams will be woven into the scheme, while elements from installations by previous employer The Arts Council will be repurposed, a small but direct gesture towards the building's original heritage.
The Manchester bet reflects a widespread belief within Grosvenor that the city's office market remains one of the strongest outside the capital, supported by a deep talent pool, business migration in and a lack of grade A property. The nearby property owner Ship Canal House, it says, is close to full occupancy following a succession of new premises and renewals.
Fergus Evans, office portfolio director at Grosvenor Property UK, said the Hive scheme exemplified the group's playbook for taking “a prime asset in a great location and repositioning it to meet the changing needs of today's occupiers”. He added: “Manchester continues to work well for us, and our investment in The Hive reflects the continued demand for well-located, high-quality offices, particularly from the growth of the city's digital and creative economy. Combining x+ why's experience in creating design-led, community-focused workplaces with our active property management approach, we are poised to deliver a unique, locally-adapted offering.”
Rupert Dean, chief executive and founder of x+why, said the operator was “delighted to be working with Grosvenor and bringing Hive to its next chapter”. He added: “The Northern Quarter is one of the most exciting and entrepreneurial parts of the UK, and The Hive will reflect that energy, providing a workplace that is not only functional, but inspiring and community-driven.”
For SMEs and the promotion of Manchester's digital and creative cluster, residents and Grosvenor and x+why love each other, the arrival of a high-quality, visitor-led dynamic brand on Lever Street is likely to sharpen competition with established players such as WeWork, Bruntwood and The Department, and may move headline recruitment to the top autumn when it opens the door to the Northern Quarter.
