City office take ups reach record levels

MANCHESTER city centre has enjoyed a record  year for office take ups with more than 1.3m sq ft in 319  transactions.

Manchester Office Agents Forum (MOAF) which has released the figures, says this represents the highest take up in more than 10 years and is only 295 sq ft less than the highest ever figure recorded in 2001.

MOAF confirmed lettings were up 55% on 2013 and is up just 39% on the city’s 10 year average.

Last year was not dominated by any single large letting with the growth down to an increase in take up across the whole market, confirming Manchester’s economy is continuing to thrive across all business sectors and at all levels, says MOAF.

Most notable transactions and buildings of 2014 were 3 Hardman Square with more than 65,000 sq ft let to Towergate Insurance and TLT Solicitors, Slater and Gordon’s acquisition of 58 Mosley Street totalling 107,182 sq ft, just under 100,000 sq ft being let at Piccadilly Place in two deals to NuGeneration and Barclays Bank, ASK’s First Street development let just above 100,000sq ft to Trader Media Group, Ford Capital and Gazprom and One St peters Square was successful in securing 54,000sq ft with the recently announced letting to DLA and further expansion space for KPMG.

Associate partner at WHR Porperty Consultants and spokesperson for MOAF, Anthony Howcroft, said: “In a year when significant devolved powers were announced for Manchester, the city’s office market has proved itself to be a powerhouse on the national stage.

“This bumper year has been a result of improved demand across the whole market with all price points and size brackets experiencing growth in 2014.

“Significantly, the number of transactions at rents above £25 per sq ft has more than doubled, both in terms of the amount of space transacted the percentage of overall market, accounting for more than 21% of all office space leased in 2014.

“This confirms the rental growth talked about throughout the year.”

MOAF is predicting the increasing demand and a limited supply of Grade A office accommodation will continue to fuel rental growth in 2015 with headlong rents already reaching £32 per sq ft with members of MOAF pedicuring there will be further increases in headline rents and a reduction in incentives for prime stock.
 

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