The first upward rent review for Grade A office space in Manchester has been recorded since the recession, with law firm Clyde & Co paying £28/sq ft, rising from £26/sq ft, at Chancery Place, according to landlord’s advisor CBRE.
CBRE said the review, triggered in August 2015 and concluded in recent weeks, shows the only “Grade A rental growth at rent review on an office building within Manchester’s traditional city centre office core since 2007/2008.”
Clyde & Co occupies 30,800 sq ft on four floors, the first, second, third and fourth. Clyde & Co agreed a lengthy rent-free period when it signed in August 2010 and then moved onto £26/sq ft after the rent-free period ended.
The building saw its record headline rent at £34/sq ft, or £30.50/sq ft net, when Colliers International signed for the 12th floor in October 2015, CBRE said.
CBRE was then able to demonstrate rental growth within the building, equating to below £30/sq ft for the lower floors.
Developed in 2008, Chancery Place occupies an island site off King Street and comprises 106,200 sq ft multi-let over basement, ground and 14 upper floors.
Fiona Halliwell, director in lease consultancy at CBRE Manchester, said: “Chancery Place is widely considered to be the best prime, Grade A office building in Manchester’s traditional office core. It is great news for the client that the rent reviews have concluded that the building has shown rental growth from £26 to £28 per square foot and has outperformed competitors in terms of rental growth since 2007/2008.”
David Hidderley, investment fund asset manager at landlord NFU Mutual, added: “It’s a testament to the quality of the building that following last year’s headline deal, we are now seeing rental growth at reviews.”
CBRE is now concluding further rent reviews at Chancery Place on other floors. Cushman & Wakefield advised Clyde & Co.