Office space in Manchester is on track to reach a million sq. ft. in 2016 – something that may well be influenced by the EU referendum result.
Recent research by Collier International notes that investors from overseas have kept an interest in prime office space in Manchester, in part due to the devaluation of sterling after the UK voted in favour of leaving the EU. This is something that has been shown with the recent acquisition of One St. Peter’s Square, which was bought by Deka Immobilien, a real estate investor, for the sum of £164m.
A number of other major office space deals have recently been carried out in the city, including the takeover of a Grade A 165,000 sq. ft. office space by an insurance company, and a government department making a deal for a 60,000 sq. ft. space.
In total, the legal field accounted for nearly a quarter of all office space take-up in Manchester so far this year, whereas media and tech accounted for 16% of the total, and business services a further 15%. Although good for the city, this may mean that there is a distinct lack of ready-to-occupy office space available in Manchester at the beginning of 2017.
This surge in demand comes after a 35% fall in occupation in the first three quarters of the year when compared to 2015, and offers a timely boost in office space up-take figures, helping Manchester’s business scene continue to thrive.