Manchester ranks third for best performing UK office market in Q2

125 Deansgate

Take-up during the second quarter of 2019 in the UK city office markets outside of London was at its highest level since the first quarter of 2018, increasing by 55% to 1.9m sq ft, according to real estate business CBRE.

And Manchester was ranked in the top three best performing office markets relative to trend for the second quarter of 2019, with take-up 59% above the 10-year average trend, along with Southampton and Birmingham.

Three out of four key deals across UK markets during Q2 2019 were completed in the North of England.

CBRE’s office agency team in Manchester completed its largest deal of the quarter to Spaces who acquired 121,900 sq ft at 125 Deansgate.

A further two deals over 50,000 sq ft completed over the quarter.

Sky Bet acquired 135,900 sq ft at 4 Wellington Place in Leeds.

Manchester take-up increased by 56% to 475,500 sq ft, representing an increase (47%) on the corresponding period in 2018.

The business services sector accounted for the largest proportion of take-up at 32%, with consumer services and leisure second at 22% and creative industries placed third at 20%.

Availability in Manchester fell by two per cent to stand at 2.5m sq ft.

Liverpool saw a significant increase on the subdued levels seen in the previous quarter (12,500 sq ft) with take-up for Q2 2019 at 144,300 sq ft.

The creative industries sector accounted for the largest proportion of take-up at 24%, with business services and banking and finance joint second and third place at 21%.

Take up year-on-year change saw Liverpool as the third highest (168%) behind Docklands (205%) and Southampton (168%).

Take-up in Liverpool for Q2 2019 saw the second largest year-on-year growth of any UK office market outside of London, rising by 168%.

The largest deal of the quarter in Liverpool saw Sony acquire 50,000 sq ft at the Echo Building, Old Hall Street.

There were two further deals of more than 20,000 sq ft completed in Q2. Availability in Liverpool fell by 12% to 573,500 sq ft, the lowest level since Q1 2018.

Jonathan Cook, associate director, CBRE’s office agency team in Manchester, said: “These results are testament to the resilience of the North West office markets and its ever-increasing talent pool, supporting businesses with some of the best workforce the UK has to offer and we are already seeing a busy Q3 with strong interest levels in a time of year that is normally quiet.”

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