Manchester’s office rental market is experiencing substantial growth. Prime rents have surged by 10% year-on-year, driven by high demand and limited supply of quality office spaces.
As new developments are set to complete, the city is positioning itself competitively against other major UK cities. The focus on sustainable and top-tier amenities is attracting high-profile tenants, indicating a positive outlook for the future.
Rising Prime Rents in Manchester
Prime rents in Manchester have seen a remarkable increase, rising by 10% year-on-year to reach £44 per square foot in Q2 2024. This surge is primarily driven by a strong demand from professional services, government, and technology businesses combined with a limited availability of quality office space.
According to Matt Pickersgill, Associate Director at Avison Young, Q2 2024’s surge was “a much needed injection of activity” for Manchester’s city centre office market, which experienced “a fairly subdued start” to the year. He also highlighted the growing presence of serviced office operators, with over 120,000 square feet transacted across three deals.
New Developments on the Horizon
Office Market Performance
Key Development Areas
Outlook for Landlords
ESG and First-Class Amenities
Demand is particularly strong for office spaces offering the best ESG credentials and first-class amenities. The focus on environmental, social, and governance factors is becoming increasingly pivotal in attracting high-profile tenants.
With global firms such as ‘ARM’ making significant investments, it underscores the importance of advanced facilities and sustainable development in today’s competitive office market.
Conclusion
In conclusion, Manchester’s office market is experiencing a significant uplift, driven by robust demand and limited supply of quality spaces. With new developments on the horizon, the city is set to remain competitive against other UK locations.
Landlords can anticipate rising rents, particularly for premium Grade A spaces offering top-tier ESG credentials and amenities. The ongoing interest from key sectors signals a bright future for Manchester’s office market.
In conclusion, Manchester’s office market is experiencing a significant uplift, driven by robust demand and limited supply of quality spaces. With new developments on the horizon, the city is set to remain competitive against other UK locations.
Landlords can anticipate rising rents, particularly for premium Grade A spaces offering top-tier ESG credentials and amenities. The ongoing interest from key sectors signals a bright future for Manchester’s office market.