Manchester records bumper Q4 but office take-up dips marginally year-on-year

While slightly above the five-year average, the 1.14m sq ft transacted in 2025 was 80,000 sq ft below the 2024 total despite a strong final three months, which saw 370,000 sq ft worth of deals inked, according to Manchester Office Agents Forum.

Take-up for 2025 was a whisker above the 1.1m sq ft five-year rolling average and included AutoTrader’s 130,000 sq ft letting at No3 Circle Square, the largest deal of the year.

That deal was signed in the first quarter of 2025 as part of a 320,000 sq ft aggregate for January, February, and March.

The final quarter of 2025 was the best performing in terms of city centre office deals, with agents notching up transactions worth 370,000 sq ft.

The highlights in October, November, and December were JMW’s 42,000 sq ft deal at 125 Deansgate, and a double letting at Ask and M&G’s Aviary that saw Latham & Watkins and Forvis Mazars take a combined 65,000 sq ft.

Professional services and legal firms drove demand in 2025, according to MOAF, with tech and finance also highly active in the market.

Out of town

South Manchester recorded 541,367 sq ft of office take-up in 2025, with 183,727 sq ft transacted in Q4 alone, an 83% jump year-on-year.

The standout transaction was the 45,300 sq ft letting to Vitality Insurance at Stockport Exchange, the largest single office letting in South Manchester since 2019.

Salford Quays saw 236,529 sq ft of office take-up across 2025, with 27,043 sq ft completed in Q4.

Despite a slower end to the year, Salford Quays recorded its highest annual take-up since 2022, representing an increase of more than 50% on 2024 levels, MOAF said.

The highlight of 2025 was a 48,513 sq ft letting to Warner Brothers at 75 Trafford Wharf Road in June; the building will be used to film the TV show Waterloo Road.

2026 outlook

Many had predicted Manchester would record 1.3m sq ft in 2025 but some deals that had been expected to complete before year end have slipped into 2026.

Jonathan Cook, director in Colliers Manchester’s national offices team, said: “There are already a significant number of live requirements circulating from existing Manchester occupiers and we are seeing an ever-increasing numbers of non-Manchester based businesses looking to expand or relocated into the city due to its direct access to talent and world class universities.”

The success of 2026 from a leasing perspective hinges on whether the city can satisfy demand amid constrained supply, but Cook is hopeful of another positive year for the Manchester market.

“Even with a tightening supply pipeline, best‑in‑class buildings continue to be occupied quickly, a clear sign that quality will remain central to supporting talent, culture and business performance.

“The city centre continues to demonstrate remarkable resilience, with 2025 marking yet another year where take‑up outpaced long‑term averages. The surge in legal sector activity, combined with sustained occupier appetite for high‑quality, amenity‑led workspace, highlights how occupiers are prioritising quality more than ever.”

The strong performances of the out-of-town markets are also “well positioned” to continue, according to Anthony Howcroft partner at Hallams Property Consultants.

“The flight to quality seen last year is expected to continue, with occupiers prioritising Grade A and well‑refurbished space as they refine workplace strategies and compete for talent,” he said.

“Both [the South Manchester and Salford Quays] markets continue to benefit from access to a highly skilled workforce, which remains a key consideration for expanding businesses.

“Locations offering excellent transport connectivity and strong surrounding amenities are anticipated to attract the greatest demand in 2026, reinforcing the appeal of well‑connected, high‑quality workspace across South Manchester and Salford Quays.”

MOAF is made up of Avison Young, BE Group, CBRE, Colliers International, Canning O’Neill, Cushman & Wakefield, Edwards, Fisher German, Hallams Property Consultants, TSG Property Consultants, JLL, Knight Frank, LSH, OBI, Savills, and Sixteen.