City centre office space transactions show double digit annnual improvement
Office space transactions in Manchester city centre increased by 15.3% in 2022.
New figures from the Manchester Office Agents’ Forum (MOAF) showed that an annual total of 1,213,843 sq ft of office space transactions took place, compared with 1,052,746 sq ft in 2021.
In the city centre, the fourth quarter of 2022 saw deals completed on 426,872 sq ft of office accommodation, up from 347,141 sq ft the previous year, representing an uplift of 23%. The figure in Q4 is also up by 30% in comparison with Q3.
John Nash, director at Manchester-based office agency Canning O’Neill, said: “The final part of the year heralded a number of large transactions, notably Deloitte’s decision to take 63,066 sq ft at 100 Embankment and two lettings of over 35,000 sq ft in Manchester Goods Yard.
“Rental growth has also continued evidenced by a new headline rent set in Q4 to Xero at Landmark at £40 per sq ft.”
In Salford Quays and Old Trafford, the annual take-up figure increased to 277,802 sq ft, up from 255,791 sq ft in 2021.
There were five deals of more than 10,000 sq ft in the final quarter, with Horwich Farrelly’s 16,040 sq ft at Orange in MediaCity the largest deal of those. The total number of transactions completed in the year was also up at 126 against a total of 87 in 2021.
In south Manchester, 462,977 sq ft of office space was transacted in 2022, with a take up of 109,988 sq ft in Q4. Alderley Park secured the largest letting of the quarter to Airship Interactive which took 15,385 sq ft.
Anthony Howcroft, partner at Hallams, said: “We are encouraged by the overall take up across the region.
“Organisations are recognising the importance of high quality office space for both their people and their financial performance, and this has reflected in the lettings we have seen at premier business destinations such as MediaCity, Embankment and Alderley Park.
“With the evolution of working practices and businesses increasingly demanding more from their working environment, we fully expect to see this ‘flight to quality’ continue.”
Flexible workspace provider x+why, has announced it will be taking the ground floor east, first floor and half of the second floor at 100 Embnkment, which totals 34,277 sq ft. The operator has sites across London and Birmingham with 100 Embankment being their first co-working space in the North of England.
Salford City Council is the landlord of 100 Embankment, and Salford City Mayor, Paul Dennett, said: “These figures speak for themselves. It’s been a really successful period for Embankment in terms of attracting businesses to our city and securing new leasing agreements. The story behind these figures highlights that the decision for the city council to invest in this development and ongoing regeneration of our city was, indeed, the right one.”
MOAF was formed in 2009, and members include Avison Young, BE Group, CBRE, Colliers International, Canning O’Neill, Cushman & Wakefield, Edwards & Co, Hallams Property Consultants, JLL, Knight Frank, LSH, Matthews & Goodman, OBI, Savills, Sixteen, and TSG Property Consultants.