The latest office take-up figures from the Manchester Office Agents Forum show a significant increase in Q2 transactions from Q1 2017 across all major markets.
Just over 284,000 sq ft was transacted in Manchester City Centre in the second quarter of this year, a 27% increase on the same period last year. Combined with a positive first quarter, H1 take-up for 2017 totalled 492,730 sq ft, a 17% increase on the first half of 2016.
There were 68 transactions in the city centre from April to June with 5 transactions at over 10,000 sq ft including existing city centre occupiers Kaplan and CarFinance247 relocating to Universal Square and Weightmans at No 1 Spinningfields. In addition there were two major inward investor lettings to WeWork and Distrelec.
Andrew Rands, Associate Director at JLL and MOAF spokesman, said: “We continue to see strong levels of demand across Manchester City Centre from both existing occupiers and inward investors.
“The letting to WeWork at 1 Spinningfields, their first operation in the UK outside of London, and to Distrelec at 2, St Peters Square, which is their first operation in the UK, are a significant statement for the Manchester market.
“Looking forward, there are a number of potential larger transactions in the pipeline which suggest total take up for 2017 will exceed 1M sq ft for the fourth consecutive year.”
In South Manchester, 192,000sq ft of office space was transacted in Q2, continuing the trend of improvement, being 38% above Q1.
The largest letting was at Pacific House where Vodafone took 33,567 sq ft. Notably, larger freehold transactions at healthy values have returned to the market with the 21,000 sq ft Aspect House in Altrincham sold to Lookers Plc.
The combined Salford Quays and Old Trafford take-up figure was 84,000sq ft, reflecting the diminishing stock levels as buildings continue to be converted for residential use. The largest letting was 21,232sq ft at Regent Place, Salford to Convergys.
Andrew Gardiner, Director at TSG Property Consultants commented: The Half Year figures for out of town office markets are encouraging and with the quantity of existing requirements in the marketplace, take-up should go well during the remainder of 2017.”
Formed in 2009, MOAF members include, JLL, CBRE, Colliers, Canning O’Neill, Cushman & Wakefield, Edwards & Co, GVA, Hallams, Knight Frank, LSH, Matthews & Goodman, OBI Property, Savills, Sixteen Real Estate, TSG Property Consultants, WHR and BE Group.
