Q1 saw take-up of around 272,000 sq ft, compared to 170,000 sq ft at the same time last year. This follows on from a strong end to 2012 meaning that Manchester has seen transaction levels in excess of 500,000 sq ft for the past six months.
Promising prospects for 2013
For the entirety of the year, LSH research predicts a total take-up of 800,000 sq ft for Manchester, which would be an improvement on 2011 and 2012 This doesn’t include the major enquiry currently in the marketplace, the much publicised Project Tomorrow which if satisfied would provide a major boost to the region .
Larger floorplates in high demand
In terms of market trends, the lack of available Grade A stock has become a major issue, particularly for occupiers seeking larger floor plates. The lack of competition has assisted in generating more interest for buildings such as 3 Hardman Square which recently let 22,000 sq ft to WorldPay.
Supply unlikely to meet occupier demand
There will be additional high quality space delivered to the market over the next 12 months such as IVG’s 35 Fountain Street, The Co-op’s Hanover House and the former home of Cobbetts 58 Mosley Street. However with no new build development until mid 2014 and with a substantial amount of lease events (approx 1m sq ft) over the next 18 months providing relocation opportunities, for those occupiers seeking to upgrade their accommodation supply is unlikely to meet demand.
To read the most up-to-date statistics on the Manchester city centre and out of town office markets, click here to view our latest Manchester Office Market Pulse.