The amount of office space let in Manchester reached a seven-year high in 2016’s final quarter, according to real estate advisers Colliers International.
From October to December 2016, a total of 621,016 square feet of office space was let in 83 property deals. This is the largest amount rented since 2010, and brought 2016’s total for the Northern city up to 1,306,599 square feet.
Talking about the figures, Collier’s Manchester director, Peter Gallagher, said:
“Overall, the city centre office market has shown a remarkable resilience following the EU referendum, with 2016 take-up exceeding that of other regional UK cities.”
Office space in Manchester is attractive for a wide variety of businesses, but Gallagher predicts that law, technology and media firms will be dominant in the coming years. Vodafone and Virgin Media have set up Manchester offices, and Co-op Digital has expanded its offices in the city.
There is a shortage of Grade A office space that is available now and this could slow the growth of office space rentals in 2017. New office developments at 1 St. Peter’s Square and 40 Spring Gardens will be available for occupation soon, but a majority of this space has been pre-let.
Developments at 2 St. Peter’s Square and 8 Firth Street are due to be completed by the end of 2017.
Shortage of Grade A office space will probably drive up rent levels, but this should not dampen demand for quality office space in Manchester.