Island, HBD, p via Inform Comms

Virgin Media O2's Island deal was the largest in Q4. Credit: via Inform Comms

MOAF: Manchester let 1.22m sq ft of office space in 2024 

While just missing the 1.3m sq ft predicted at the end of Q3, the city has recorded its highest office take-up figure since before the pandemic, according to the Manchester Office Agents Forum.

The 1.22m sq ft transacted in 2024 exceeds Manchester’s five-year take-up average and is the best figure recorded in the 2020s, narrowly surpassing 2022’s 1.21m total.

Last year’s total is also a significant improvement on 2023, when less than 1m sq ft was transacted.

The heady heights of 2019, when 1.45m sq ft was let will be the next target for the city’s office agents.

The return of big deals

The largest transaction of the year saw BNY Mellon take 200,000 sq ft at 4 Angel Square.

Across the whole of 2024, 536,180 sq ft of office space was let in transactions of 20,000 sq ft or more in the city centre, this is double the number of transactions over 20,000 sq ft when compared to 2023, MOAF said.

The home straight

Notable deals in the final quarter of the year included Channel 4’s 12,200 sq ft letting at St Michael’s and Virgin Media O2’s lease of 45,000 sq ft at HBD and GMPF’s Island development on John Dalton Street.

In total, 280,598 sq ft of office space was let across the city in the final three months of the year, down on the 432,000 sq ft recorded in Q3.

Dominic Pozzoni, head of Colliers’ Manchester office, was pleased with the amount of letting activity in 2024.

“The performance of Manchester’s office market in 2024 was highly encouraging, with take-up surpassing the five-year average and signalling a strong recovery post-pandemic,” he said.

“The demand for larger office spaces, as seen by Bank of New York Mellon transaction, highlights the city’s appeal to major occupiers looking to establish or expand their footprint in the region.”

Mark Bamber, partner in Knight Frank’s Manchester office added: “2024’s strong performance illustrates the continued demand for best-in-class office space providing the highest level of occupier amenities and the greenest environmental credentials.”

Angel Square

MEPC’s 4 Angel Square welcomed BNY Mellon in the year’s largest deal. Credit: via Influential

Looking ahead

In the city centre, 2025 is off to a good start too; Autotrader signed for 130,000 sq ft at Bruntwood SciTech’s No3 Circle Square this month.

Pozzoni believes this deal could be a sign of things to come.

“The outlook for 2025 indicates continued sustained demand for Grade A office space,” he said.

“Occupiers are increasingly prioritising business continuity and operational resilience, which will influence their real estate decisions.”

He added: “Limited speculative development in the pipeline further exacerbates the supply-demand imbalance, suggesting that competition from occupiers for the best office spaces, will intensify.”

Out of town

The picture was less rosy for the out-of-town market. Across South Manchester, Trafford, and Salford Quays, total take-up for 2024 was 489,197 sq ft, down 58,000 sq ft year-on-year to 489,000 sq ft.

However, the number of transactions was up significantly – 315 in 2024 compared to 251 the year before – suggesting a shift to smaller lettings.

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

The figures provided by MOAF are for new space transacted and do not take into account net absorption – the amount of space transacted versus the amount vacated.

Your Comments

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Powerhouse

By Bob

Do these people not understand that WFH is the new norm and there is literally no need for offices. My internal monologue won’t consider anything else so this must right. This whole story is but an illusion, a figment of a febrile imagination, a …well you get the point. I could be wrong though.

By Chicken Little

I saw an empty office once. Blue it was, that means all of the other offices are also empty and also blue, or maybe just the ones I’ve seen. Life’s hard sometimes.

By Heslop

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