Manchester office agents report five-year take-up high

With 332,100 sq ft of deals over 52 transactions reported in the city centre in the second quarter of the year, the commercial sector has received a significant bump after a lacklustre start to 2024.

Manchester Office Agents Forum released its Q2 results today, noting that this quarter was the best-performing Q2 and first half of the year since 2019. It is certainly better than the previous quarter, which only saw 173,000 sq ft of deals completed. Similarly, Q2 in 2023 reported only 179,100 sq ft take-up.

The largest lease of this latest quarter was Cubo’s taking of the 59,100 sq ft former WeWork space at No1 Spinningfields – WeWork having vacated the premises in May. Cubo signed a 12.5-year lease for the three-floor office.

Other notable serviced office deals included Gillbanks signing for 33,900 sq ft at St Michaels and Koba opting to make its debut with 28,100 sq ft at 100 Barbirolli Square.

More traditional leases from the quarter include engineering company Jacobs’ signing for 22,400 sq ft at The Lincoln and AMS’s taking of 16,400 sq ft at 1 Hardman Street.

Sixteen Real Estate published the MOAF stats for the quarter, with associate Rosie Veitch saying: “The latest MOAF data underscores the positive sentiment across the market and we predict an even stronger H2 with a substantial pipeline of larger deals due to complete later in the year.

“Grade A space continues to let well, and these transactions are driven by the pursuit of quality office space with rich amenity, strong ESG credentials, and flexibility are now at the forefront of occupiers’ minds when acquiring new office space,” she continued.

Veitch also cited refurbishments as another reason for optimism in the sector, noting that upgrades to the Aviary, Quoin, and Havelock are to complete in the next quarter.

She added: “Proactive landlords delivering best-in-class refurbishments continue to reap the rewards for example Threadneedle’s Clarence House which has secured a record rental tone of £45.00 per sq ft.”

As for what occupiers are looking for – the 10,000 sq ft market was described as “buoyant” by Veitch, but she also insisted that smaller spaces are proving resilient.

Further afield

Looking beyond the city centre into South Manchester, Trafford, and Salford Quays, take-up was reported as 110,400 sq ft over 74 transactions. Most of that was in South Manchester, with MOAF reporting a take-up of 80,640 sq ft over 62 transactions in the quarter.

Lambert Smith Hampton surveyor George Cohen remarked: “The sentiment within the out-of-town office market remains strong with a number of active requirements circulating within Greater Manchester and the surrounding areas.’’

MOAF is made up of members from Avison Young, BE Group, CBRE, Colliers International, Canning O’Neill, Cushman & Wakefield, Edwards Property Consultants, Hallam Property Consultants, JLL, Knight Frank, LSH, Fisher German, OBI, Savills, Sixteen Real Estate, and TSG Property Consultants.