Manchester
Take-up
TOTAL TAKE-UP IN QUARTER (SQ FT)
CHANGE ON LAST QUARTER
CHANGE ON 10 YR QUARTERLY AVG
TAKE-UP (SQ FT)
Source: Avison Young
Q4 take-up totalled 449,929 sq ft, 27% below the 10-year Q4 average. Despite a weaker Q4, total 2023 take-up totalled 2 million sq ft, just 6% below the long-term average.
Q4 take-up was stronger in the out-of-town market which matched its 10-year average, while the city centre market was 45% below the 10-year average.
Key deals included:
- BDO’s 23,017 sq ft lease at Eden, the new build development which completed in early 2024;
- Alvarez & Marsal’s 14,160 sq ft lease at The Lincoln;
- Hurst Accountants’ 11,248 sq ft lease at 3 Stockport Exchange, setting a new out-of-town rent of £27.00 per sq ft.
The leading drivers of take-up over the past year were the professional services, government and services and TMT and creative sectors, which together accounted for 68% of deals.
The prime rent remained at £43.00 per sq ft, now 7.5% higher than a year ago.
NOTABLE DEALS
Source: Avison Young
PRIME RENT
Per sq ft
Quarterly Change
Source: Avison Young
12 month change
Rent free months (10-year lease)
TAKE-UP BY SECTOR
Source: Avison Young
ANNUAL TAKE-UP (SQ FT)
Source: Avison Young
Availability
AVAILABILITY RATE
CHANGE ON LAST QUARTER
CHANGE ON LAST YEAR
AVAILABILITY (SQ FT)
Source: CoStar, Avison Young
The availability rate fell 29 basis points to 9.9% but premium quality space remains undersupplied, with the grade A availability rate at 2.8%.
Development pipeline
DEVELOPMENT PIPELINE (SQ FT)
Source: Avison Young/PMA
A total 233,000 sq ft of new and refurbished space completed in 2023 at 4 Angel Square and Bond. Eden completed early in 2024, and a further 560,000 sq ft is due to complete throughout the rest of the year, of which 339,966 sq ft is available at schemes such as The Island, St Michael’s, Havelock, and 4 New Bailey (fully pre-let).
Investment
TOTAL INVESTMENT VOLUMES
CHANGE ON LAST QUARTER
CHANGE ON 10 YR QUARTERLY AVG
PRIME YIELD
INVESTMENT VOLUMES
Source: Real Capital Analytics, Avison Young
INSIGHT
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TOP DEALS
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