Market snapshot

Office Market Pulse Manchester Q2 2017

Q2 figures have not disappointed, with the promising start to the year continuing. City centre take-up for H1 2017 is showing a 14.6% increase on the same period in 2016. Demand from larger occupiers for new Grade A stock is also showing no signs of slowing down with 94,745 sq ft transacted across four deals in Q2 and accounting for over a third of the total sq ft transacted.

You can download a PDF version of this here Office Pulse Manchester Q2 2017

In this issue:

Momentum continues

City centre office take-up for Q2 2017 reached 284,497 sq ft across 68 transactions, a 23.3% increase on the same quarter in 2016.During the first half of the year it reached 492,730 sq ft, an increase of 14.6% on the previous year.

Notable transactions during Q2 included, co-working giant We Work taking 55,802 sq ft at No.1 Spinningfields reflecting the ongoing demand for co-working space in Manchester. Weightmans took 17,949 sq ft at the same building. 

Small scale requirements (space sized below 5,000 sq ft) show no sign of reducing in demand with them accounting for 82% of the 68 transactions completed in Q2. 

South Manchester’s take-up during Q2 increased by 19.5% (192,483 sq ft) on the same period last year.  

The combined Salford Quays and Old Trafford take-up for H1 was 84,318 sq ft, a 25.9% decrease on H1 2016. The largest letting,   21,132 sq ft at Regents Place, Salford, was achieved by LSH. 

LSH also secured the largest office deal this year outside of the city centre by acquiring 47,149 sq ft at 106 Dalton Avenue at Patrizia UK’s Birchwood Park, Warrington for Cavendish Nuclear.

Demand for high quality space steadies from SMEs in Q2

Over a third of all rental transactions (20) were in the £15.01 - £20.00 psf price bracket, indicating that the demand for high quality stock has steadied in relation to Q1. 

However, there is still significant interest from large corporates in new prime Grade A stock in Manchester with 94,754 sq ft transacted across four deals, which equated to over a third of the total sq ft transacted.

The snap general election had little impact on the office market in Q2. Manchester’s office market has shown resilience throughout 2016’s political events and this has continued throughout the first half of 2017.

Key occupational transactions, Q2 2017


Size (sq ft) 

Landlord(s)/ vendor


No. 1 Spinningfields 55,802 Allied London We Work
106 Dalton Avenue 47,149 Patrizia Cavendish Nuclear
Universal Square 32,900 MCR Property Carfinance 247
No. 1 Spinningfields 17,949 Allied London Weightmans
Two St Peter's Square 16,271 Deutche Distrelec

Source: Lambert Smith Hampton 

Achieved rents steadily on the rise within the city centre

The highest rent achieved within the City Centre this quarter was at Two St Peters Square at £33.50 psf and No.1 Spinningfields at £32.00 psf.

Due to the limited supply of grade A space, an average incentive package now tends to comprise a six-nine month rent free package for a five-year lease with a three year break option.

Tomorrow Building at Peel’s MediaCityUK achieved the highest out of town rent in Q2 with StreamUK taking 2,227 sq ft at £20 psf, reflecting the continued demand for Grade A office space not only in the City Centre but also out of town.

Investment transactions Q2

Greater Manchester office investment activity slowed in Q2 2017 with just £80.5m being transacted, compared to £119m on the previous quarter in 2017. This decrease is not attributed to demand but rather to the lack of stock.

With concerns surrounding Brexit ongoing, investors are expected to act with caution and continue to focus on buildings in prime locations with strong fundamentals.

Activity for the quarter was dominated by Manchester city centre office transactions which accounted for half of the six transactions. 

Key deals included Castlebrooke Investment’s purchase of CIS Tower for £66m and Trinity Court which was bought for £12.9m by Helical.

Key investment transactions, Q2 2017


Value (£m) 



CIS Tower, Miller Street 66 Castlebrooke Investments Hermes REIM
Trinity Court, John Dalton Street 12.9 Helical plc Ardstone UK ROF

Source: Lambert Smith Hampton 

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