Manchester Grade A space at ‘5-year low’
AVAILABLE Grade A office space in Manchester city centre is at a five-year low after falling by one third in 2013, according to a study by Colliers.
Its latest net stock absorption (NSA) report shows that available office space in the city centre was about 150,000 sq ft – 75% down on the 600,000 sq ft available in December 2009.
Total take-up in the city rose 12% to 869,180 sq ft last year, said Colliers.
Key deals during the year included World Pay taking 22,069 sq ft of space at 3 Hardman Square, Spinningfields, Jacobs committing to 23,526 sq ft of space at First Street and Travel Jigsaw signing for more than 60,000 sq ft at Sunlight House, Quay Street.
Colliers expects “strong transactional activity” this year which has started with Barclays taking 80,000 sq ft at Carlyle Group’s 4 Piccadilly Place, and Trader Media said to be signing for 60,000 sq ft at First Street. Australian law firm Slater & Gordon confirmed this week it is looking for an office in the city after acquiring part of Pannone.
The report said headline rents remained unchanged at £30/sq ft last year but that the continued reduction in available Grade A office space would produce a further rise in rental levels in the first half. Rising costs and lack of availability are also leading to greater interest outside the centre.
Michael Hawkins, director in the national offices team, said: “The market dynamics have reached an interesting point in the property cycle, with diminishing quality supply versus increased demand. After seven years the pendulum has swung back to favouring landlords. Tenants will now need to secure quality advice in order to market their operational interests.”
