Manchester dominates regional office deals

TWO of the first quarter’s five biggest regional office deals were in Manchester, according to GVA’s Big Nine office report.

It shows that total office take-up performed strongly, at 7% above the five-year average, with both city centre and out-of-town office take-up continuing to rebound.

GVA said nine UK city centres all made a robust start to the year, with lettings totalling 1.16 million sq ft.

Manchester recorded 250,000 sq ft of deals with Barclays’ 80,000 sq ft letting at 4 Piccadilly Place and Trader Media Group’s 60,000 sq ft deal at No 1 First Street making the top five.

The others were: Rockstar Games taking 75,500 sq ft at the Scotsman building in Edinburgh; the Criminal Injuries Compensation Authority’s deal for 30,000 sq ft at Alexander Bain House in Glasgow; and the 28,300 sq ft letting to Teleperformance at Baltic Place in Newcastle.

Chris Cheap, head of North West offices for GVA, said: “Manchester has yet again shown a healthy level of take up, which bodes well for the year ahead. The most exciting aspect of the first quarter however is the level of inward investment we are seeing from occupiers who see Manchester as the right destination for their business.

“With Trader Media moving into the city and impending commitments from Ford Credit Europe (60,000 sq ft) and Towergate Insurance (50,000 sq ft) it is clear that the city has the right ingredients for footloose occupiers.

“It is hoped that the supply pipeline can keep pace with this as existing stock is absorbed. The soon to be completed One St Peters Square will inject a much needed 200,000 sq ft and will ensure that Manchester continues to be ‘open for business’ for those occupiers seeking prime space in the city.”

Office take-up in the out-of-town markets across the quarter was 651,000 sq ft, 6% above the five-year quarterly average.