The Manchester city centre office market has reported significant activity in Q3 2023, with take-up more than doubling to 351,063 sq ft compared to the previous quarter.
Manchester City Centre saw a substantial uptake in office space, reaching 351,063 sq ft for Q3 2023, compared to 179,073 sq ft in the previous quarter. A total of 59 deals were completed with highlights including Arden University acquiring 42,944 sq ft at 2 Hardman Street, UA92 signed up for 36,751 sq ft at Bruntwood’s Riverside, and Cubo leased 30,829 sq ft across two floors at The Lincoln. Q3 also saw Manchester reach record headline rents in the city centre with Relentless Development’s pre lets to Pinsent Masons and Hill Dickinson at No.1 St Michael’s achieving £43 per sq ft.
“Grade A space continues to let well, especially as supply of quality space is diminished in the city centre,” said Rosie Veitch, from Sixteen Real Estate. “The take-up we’ve seen over the last three months is hugely positive, and we expect this level of level of activity to continue as we look ahead to the final quarter. The region is poised for a strong finish to the year, and we are confident take up will again surpass 1m sq ft for the year.”
In South Manchester, activity has also seen an increase compared to previous quarters, indicating sustained interest in office space in this sub-market. The figures show that take-up has risen to 180,987 sq ft, compared to 146,806 sq ft in Q2 2023, and surpassing Q1 2023, which recorded a total of 135,056 sq ft.
“This growth is driven by the ongoing appeal of town centre locations as well as office developments that have curated a vibrant workplace environment through the offer of quality on-site amenity. This goes a long way in helping occupiers to attract and retain talent, whilst remaining easily accessible and is obtainable at a cost-effective rate,” said Conor Walmsley, from Colliers’ National Offices team. “Towers in Didsbury is an excellent example, as it has attracted a multitude of sizeable lettings in the last 12 months, including 14,948 sq ft to software company Conferma Pay, following considerable investment to provide quality office space and a defined focus on wellbeing and events on site.
Rosie Veitch added: “The pre lets achieved at St Michael’s set a new precedent for Grade A office space in Manchester and serves as testament to the city’s resilient commercial landscape. Supply of Grade A space continues to be depleted and this makes for an interesting supply-demand dynamic as occupiers continue to favour high quality, sustainable office space in prime locations.”
MOAF was formed in 2009, and members include Avison Young, BE Group, CBRE, Colliers , Canning O’Neill, Cushman & Wakefield, Edwards & Co, Hallams Property Consultants, JLL, Knight Frank, LSH, Matthews & Goodman, OBI, Savills, TSG Property Consultants, and Sixteen.
