Another strong year for office take-up, latest figures suggest

According to Manchester Office Agents Forum (MOAF), 295,379 sq ft of office take-up was recorded in Manchester city centre during the third quarter of this year, putting total take-up for the year to date at 1,101,403 sq ft.

This latest figure has resulted in total take-up for Q1-Q3 of 2019 exceeding the Q1-Q3 five year average, with 2019 predicted to be another strong year of city centre take-up following a record 2018.

MOAF reports 71 office deals were completed in the city during Q3, higher than the number of deals in Q1 and Q2, with the largest being the 35,476 sq ft let to Marker Study at M&G/Intu’s Arndale House.

Other notable deals include 27,723 sq ft let to Capita Business Services at Helical’s Lee House and 26,259 sq ft to Regus at BA Pension Fund’s St James’s Tower.

Andrew Cooke, associate of the office agency team at Savills Manchester, said: “After a very strong first half of the year office take-up in Manchester city centre has remained robust in Q3 with a significant number of lettings to a broad range of occupiers.

“Despite the ongoing political and macro-economic uncertainties, occupational demand remains positive, with 2019 set to be another strong year for city centre take-up.”

Outside of the city centre, Salford Quays and Trafford reported its strongest quarter of the year to date at 81,710 sq ft, bringing the total for the year so far to 204,033 sq ft.

September alone saw 15 deals transacted, with the largest being 20,700 sq ft to The Doctors Laboratory at Regents Court.

Steve Brittle, senior associate at Matthews & Goodman, said: “Following a strong first half year, lettings in Salford Quay and Trafford have remained buoyant in Q3 which is demonstrated by the number of deals transacted.

“With demand remaining encouraging and the quantity of existing requirements in the marketplace we should continue to see strong take-up during the final quarter of the year.”

In the South Manchester market, 131,436 sq ft was taken, bringing the total for the year to 408,707 sq ft, which is significantly below the equivalent period for 2018.

MOAF puts this down to 2018 being a record-breaking year.

However, there continues to be pent up demand in the South Manchester market with several high-profile transactions due to complete in Q4.

Significant deals in Q3 include The Lakehouse in Cheadle, with ME Group Holdings taking 37,130 sq ft and Dow Chemical Company committing to 24,715 sq ft at Oakfield 4 Cheadle Royal Business Park.

Elsewhere, Warrington also recorded its strongest quarter of take-up so far for 2019, with 87,168 sq ft transacted in Q3.

The year-to-date now totals 190,937 sq ft, with the largest deal for this quarter being 13,600 sq ft let to Ainsworth Projects at The Academy.

Formed in 2009, MOAF members include Avison Young, BE Group, CBRE, Colliers International, Canning O’Neill, Cushman & Wakefield, Edwards & Co, GVA, Hallams Property Consultants, JLL, Knight Frank, LSH, Matthews & Goodman, OBI Property, Savills, Sixteen Real Estate, and TSG Property Consultants.