The Manchester office market has shown a substantial increase in the year’s third quarter, with just over 447,809 sq ft transacted in the city centre alone according to the latest figures from the Manchester Offices Forum (MOAF).
The Q2 figures represent a 68% increase on the same period last year.
There were an impressive 78 deals in the city centre from July to September with an exceptional eight transactions of more than 10,000 sq ft, including existing city centre occupiers relocating due to expansion.
Key transactions include the Parliamentary Health Service Ombudsman taking 32,000 sq ft at Citygate, PWC has committing to 25,197 sq ft at No.1 Spinningfields and Clyde & Co taking 69,000 sq ft at Manchester Royal Exchange.
Mark Baldwin, Associate Director at GVA, said: “Once again, we are continuing to see increasing levels of demand in Manchester City Centre from both expanding existing occupiers and inward investors.
“This is evident in the full-size range of deals being transacted and more importantly with many sizable lettings over 10,000 sq ft. Noteworthy deals to DWP and We Work at No 1 and No 2 St Peters Square respectively give a significant indication of an on-going confidence in the market.
“Moreover, there are a still number of impending larger transactions in the pipeline which suggests 2017 will be another positive year for the city centre office market”.
South Manchester has also experienced a successful quarter with 140,531 sq ft let, a 29% increase on the same period last year. To date this has provided a running total of 472,263 sq ft of deals during 2017, an impressive 45% increase on last year’s statistics.
The largest letting was to Assetz Capital who took 14,687 sq ft at Manchester Green with Biz Space purchasing 21,000 sq ft at Cheadle Place.
MOAF said that although stock is quickly diminishing there are a number of deals still to fall in by year end. It is anticipated that South Manchester’s 2017 take-up will be the highest since 2012.
The combined Salford Quays and Old Trafford take-up figure was 112,410 sq ft, a 25% increase on 2016, with Kellogg’s acquiring 48,000 sq ft at Orange Tower.
According to MOAF the supply of Grade A office space in Salford Quays has become very limited.
Jonathan Cook of CBRE said: “The running total for 2017’s out-of-town office markets are very encouraging. There are already a number of deals going into Q4 that have yet to complete and this coupled with the quantity of existing requirements in the marketplace, take-up for the remainder of 2017 should continue to be very strong.”
Formed in 2009, MOAF members include, JLL, CBRE, Colliers, Canning O’Neill, Cushman & Wakefield, Edwards & Co, GVA, Hallams, Knight Frank, LSH, Matthews & Goodman, OBI Property, Savills, Sixteen Real Estate, TSG Property Consultants, WHR and BE Group.