Manchester city centre office take-up down 37%

OFFICE take-up of 416,115 sq ft in Manchester City Centre was recorded in the first half of the year – 37% down on the same period in 2015.

According to Manchester Office Agents Forum (MOAF) says the second quarter saw 220,587 sq ft of transactions and that the performance of the market was “unremarkable” but  solid.

In total, in Q2 73 transactions were concluded, which MOAF said illustrates the strength and depth of the indigenous occupier market.

The letting of 10,883 sq ft to Mazars at One St Peter’s Square, Serco’s letting of 32,974 sq ft at Martin’s House and Bruntwood’s relocation to York House absorbing 10,591 sq ft were the standout Q2 transactions.

In South Manchester the half year take up total is 162,817 sq ft, a 40% decrease on the corresponding period from 2015. However large scale owner occupiers have returned to the market as evidenced by Boutinot Wines acquisition of 18,477 sq ft at the Point in Cheadle and Southway Housing’s acquisition of a two acre site in Didsbury for the construction of a 20,000 sq ft HQ building.

In Warrington, take-up for H1 was 187,612 sq ft, which is 25% up on the corresponding period in 2015. The stand out deals for Q2 were recorded in Birchwood where 10,475 sq ft was let to Muller at Patrizia’s Birchwood Park and 12,085 sq ft was acquired by Firstsource at Cinnamon Park.

Rob Yates, director and head of North West Office Agency at Cushman & Wakefield, said: “With key lettings such as Freshfields at One New Bailey due to complete shortly and other large scale requirements progressing well, take-up in Central Manchester will be boosted during the second half of the year, we anticipate that final figure will top 1M sq ft, in line with the five-year average for the city.

“The supply and demand dynamics are finely balanced in all of the markets we monitor and if some of known requirements complete during H2 2016 we could face a scenario where demand for the best available space would outstrip the supply.”

Formed in 2009, MOAF members include OBI Property, CBRE, Colliers, Canning O’Neill, Cushman & Wakefield, Edwards & Co, Bilfinger GVA, JLL, Knight Frank, LSH, Matthews & Goodman, Savills, TSG Property Consultants, WHR and BE Group.

Click here to sign up to receive our new South West business news...
Close