Bumper H2 predicted for Manchester office market  

Around 265,000 sq ft of office space is already under offer to 14 different occupiers in deals expected to complete in the second half of the year, according to research by Knight Frank. 

Manchester has recorded just shy of 500,000 sq ft of take-up so far this year and activity in the second half of 2022 is expected to build on that of the first six months, Knight Frank said in its Mid-Year Review.

So far this year, 124 occupier deals have completed. The largest saw the Government Property Agency take 130,000 sq ft at First Street. 

In total, the public sector has accounted for 30% of all deals completed in Manchester so far this year, according to Knight Frank.  

Credit: via Knight Frank

Headline rent in Manchester is currently £38.50/ sq ft at Barings’ Landmark, but Knight Frank expects the £40/ sq ft barrier to be broken later this year. 

Three of the 10 regional cities covered in Knight Frank’s review, Bristol, Birmingham and Edinburgh, have all seen rents break £40/ sq ft in 2022. 

“Interest in the UK cities has held firm [and] development continues to deliver high-quality space into many markets with net carbon zero at the forefront of this, widening the appeal of the UK cities to potential suitors,” said David Porter, head of Knight Frank’s Manchester office. 

“This placemaking investment will continue, albeit rising build costs are meaning that development appraisals are being scrutinised with even greater vigour. Rental increases are required to reflect this and the enhanced specification requirements demanded by the occupier.”