The resilient Manchester office market is expected to continue on an upward trend for the remainder of 2024 as both the traditional office sector and the serviced office sector remain strong, according to a commercial property expert.
Figures from the Manchester Office Agents Forum, made up of property agents across the city, reveal over 332,103 sq ft of transactions were completed in 52 deals in Manchester city centre during the second quarter of the year, which was a significant uplift following a slow start in Q1.
The Q2 figure was nearly double this year’s previous quarter when 173,000 sq ft of space was let in Manchester city centre.
A total of 80,640 sq ft of space was let during Q2 within the South Manchester market in 62 transactions while Salford Quays/Trafford Park witnessed a combined take up of office space of 29,743 sq ft across 10 deals during the same timeframe.
Steve Brittle, Partner at leading property consultancy Fisher German which has an office at Centurion House in Deansgate, Manchester, said the upturn in take up for the quarter demonstrates the positive sentiment in the city’s office market.
He said: “I think the significant uplift was a delayed response from Q1 because of a hold-up in getting deals over the line, for a variety of reasons.
“The three notable deals in Q2 in 2024 were all from serviced offices or co-working providers, which is an active market.
“It is a change in terms of a serviced, flexible market as opposed to the traditional office lease market. Manchester has always had a decent service offering but there seems to be a push towards that type of office space.
“Occupiers then have flexibility rather than having to commit to traditional leases. Serviced offices are not for everyone, but it means no upfront capital cost expenditure which is attractive to businesses wanting a temporary solution for 12-24 months if they are new to the market to see if they are going to be successful rather than committing to a long-term lease.
“It also reduces delivery time in terms of not having to wait for a fit-out to be completed because once a business has signed a lease and has the keys, they can start trading because the furniture and desks are already there.
“I think the upward trend in the office market will continue during the rest of the year because of the pipeline of larger deals that are due to complete later in the year.”
Steve said there was a greater demand for offices built to higher construction standards because of the increased importance of Environmental, Social and Governance (ESG) policies.
He added: “Grade A accommodation in Manchester continues to let well, and the recent deals highlight occupiers’ wishes for quality space, great amenities, flexibility and, importantly, strong ESG credentials. These are now high priorities for occupiers.
“The importance of ESG credentials and the greenest buildings is more prevalent because tenants want the best in class in terms of wellness, nearby gyms, and coffee shops, and more and more occupiers are becoming ESG focused when considering office moves.
“It will be interesting to see if the new Labour government influences the general office market. It is too early to say at the moment so we will have to wait and see.”
