Manchester’s office market is entering 2026 with strong momentum. Prime rents are set to rise, breaking through the £50 psf mark, as demand for high-quality, Grade A space continues to outstrip supply with limited new completions and a sustained flight to best-in-class buildings.
Figures from the Manchester Office Agents Forum (MOAF), which includes property consultancy Fisher German, shows the city’s office market closed 2025 on a strong footing, signally renewed confidence and positive momentum heading into 2026.
Marcus Baumber, Senior Surveyor at Fisher German in Manchester, believes Manchester’s dynamic economy, diverse occupier base and continued investment from both the public and private sector will contribute to a resilient office market in 2026.
“The general sentiment is that 2026 will be another positive year for the city’s office market, building on a reasonably strong 2025.
“Total take up in Manchester city centre in 2025 achieved 1.06 million sq ft, performing just below the five-year average of 1.2 million sq ft and supported by a strong final quarter with 289,600 sq ft transacted.
“The most active occupier sector in 2025 was professional services, accounting for 29% of total take-up, followed by Technology, Media and Telecommunications (TMT) occupiers who took around 25% of the office transacted for the year.
“A key talking point heading into 2026 is the increasingly constrained supply of Grade A, best-in-class office space. Only a little over 300,000 sq ft of new build space is currently under construction at Landsec’s Mayfield development, and this isn’t expected to complete until 2028.
“This supply pressure is expected to cause prime rents to rise above the £50 psf mark as this market becomes increasingly competitive for occupiers looking to secure high specification Grade A space.
“Developers remain constrained by high construction costs and viability challenges, which continue to delay the start of new schemes despite planning approvals. Nevertheless, projected rental growth is expected to ease this pressure and support more consented developments breaking ground.
“With constrained new build pipelines, high-quality refurbishments are set to continue bridging the gap in Grade A supply. This trend has already been seen with the likes of Pall Mall or 3 Hardman Street along with schemes currently under refurbishment including the 285,000 sq ft Rylands building which is expected to complete in 2027.
“In the out-of-town markets in Salford and south Manchester, both markets recorded strong levels of take-up in 2025.
“Salford saw 236,000 sq ft transacted, its highest level of take-up since 2022 and a 50% increase from 2024.
“In south Manchester, 541,000 sq ft of space was transacted, representing a 83% increase year-on-year.
“Buildings in the out-of-town markets which combine excellent transport connectivity with high quality refurbished space are particularly benefiting from this growing demand. This continued strength from out-of-town markets highlights Manchester’s appeal extends beyond just the city centre.
“Looking ahead, Manchester benefits from the highest graduate retention rate among UK core cities, ranks second only to London for Foreign Direct Investment, and supports a diverse occupier base led by the growing Professional Services and TMT sectors. Together, these strengths position the city’s economy – and consequently its office market – for continued growth and a positive 2026.”
