MANCHESTER OFFICE MARKET – TAKE UP 2010

The total amount of office space taken up in Manchester City Centre during 2010 reached a bumper 1,320,568 sq ft,  a 66% increase on like for like 2009 figures (793,506 sq ft) and a 39% increase on the 5 year average (950,320 sq ft). The South Manchester commercial property market held its own with total take-up for the year slightly up thanks to some large high profile lettings to large corporates, and Salford Quays really began to see the effects of the opening of Media City.

The most notable and largest City Centre transaction of 2010 was the Co-Op’s commitment to a new 328,000 sq ft HQ at their newly rebranded ‘NOMA’ site, but other Grade A lettings within the professional service sector to the likes of DWF (82,995 sq ft), MMC (39,482 sq ft), HBJ Gateley Wareing (31,344 sq ft) and Barlow Lyde Gilbert (31,011 sq ft) saw a number of other property owners enjoy success during the year. There were 236 transactions in total during the year and closer analysis of the numbers produce some interesting facts:

• more than nine out of every ten deals was for space of less than 10,000 sq ft, accounting for 46% of all space taken.
• Deals on less than 5,000 sq ft office suites accounted for 80% of all transactions
• There were 16 deals for suites of over 10,000 sq ft, accounting for 54% of all space taken
• There were 9 deals for space of over 20,000 sq ft.

South Manchester also experienced a marginally better year with 2010 take up standing at 483,641 sq ft, an improvement of 4% on last year’s figures (466,299 sq ft) though still representing a decline on the 5 year average figure of 550,000 sq ft.  A number of high profile new occupiers entered the South Manchester region most notably BSkyB, John Lewis and SPX.

The largest apparent upturn was however seen in the Salford Quays market where a total of 183,864 sq ft was let, representing an increase of 87% on last year’s figures (98,288 sq ft), however much of this was down to the so called ‘BBC effect’ representing lettings at Peels newly finished Media City.

The figures were compiled by the Manchester Office Agents Forum. Peter Gallagher, speaking for members p3 property consultants llp, stated, “Against a background of a difficult global economic picture and the uncertainty surrounding the public sector austerity measures, these figures illustrate a very strong year for the Manchester office market.  Whilst Forum members are in no doubt that the occupational markets throughout the city region will remain challenging, this level of take up must further underpin both occupier and investor confidence. The supply of Grade A office stock within Manchester City Centre is steadily being eroded with no new supply in sight, and as a consequence the upward pressure on Grade A rents and a reduction incentive packages is already being felt”.

Click here to download the the full stats

For more information on this story, please contact Peter Gallagher at p3 property consultants llp on
07812 971 560 or email peter@p3propertyconsultants.co.uk