Report highlights ‘misconception’ in Manchester office market
Last year, 70% of office relocations above 10,000 sq ft saw occupiers increasing the size of their workspace rather than downsizing, according to research carried out by OBI.
The research “contradicts the common assumption” that office moves are seeing tenants look for less space, OBI said.
This is being driven by the need for a greater level of amenity space and larger businesses mandating a return to the office.
Among the 70% of deals that saw businesses scale up their office footprint were Arm’s move from a 29,000 sq ft office to 70,000 sq ft at No1 St Michael’s and S&P Global’s move from serviced space to 19,000 sq ft in the same building.
Atkins’ 38,000 sq ft deal at Piccadilly Place and AMS’ 16,000 sq ft move to One Hardman Street are further examples.
Early this year, Autotrader signed for 130,000 sq ft at Bruntwood SciTech’s No3 Circle Square, a deal that will see the firm move out of its 75,000 sq ft First Street office.
“Following the pandemic, large corporate businesses were looking to reduce their occupational footprint, but since 2022 this trend has reversed,” said OBI director Richard Lace.
“There is a general misconception in the market that demand for prime new build and best-in-class refurbished workspace has been driven by occupiers undertaking a relocation [and] taking less, but higher quality workspace.
“Our research shows this is not the case. In 2024 70% of occupiers acquiring more than 10,000 sq ft increased the size of their office. This is up from 30 % in 2023.”
While the number of businesses taking more space is up, there were still some notable downsizes in 2024.
Virgin02 swapped its 100,000 sq ft Wythenshawe office for 45,000 sq ft at HBD and GMPF’s Island, and law firm DAC Beachcroft relocated to 13,200 sq ft at Landmark from 3 Hardman Square in Spinningfields, where it occupied a 25,000 sq ft.
Regarding all the argument around the St Michael’s development featured in the image at the head of this item; how Manchester’s Victorian heritage can be enhanced against a backdrop of quality modern development.
By Anonymous
The anti-Manchester trolls will HATE this
By Anonymous
Come on guys, we can see the empty offices with our own eyes.
By 20:20 Vision
I saw an empty office once. Blue it was . It validated all my beliefs and reinforced my biases so much that I always ignore data and reality. I don’t like those.
By Anonymous
Facts are facts. There are so many offices and indeed business districts in Manchester now I often wondered how they fill them. Still, the return to the office is progressing and Manchester has always built first , fill later adopting a build it and they will come attitude. Despite the short term peaks and troughs it’s a policy that has served well over the past 20 years or so.
By Anonymous
lets face it agents have never been that good at maths so let them believe the figures
By Dean N
What a miserable place that city is.
By Anonymous
Ooh why the jelous comment.Offices and apartments don’t make a miserable city, they make a fast growing, vibrant and dynamic one.Life isn’t that bad in the city but it can be if you don’t feel you belong or you just want to work from home and they won’t let. There’s always the countryside or somewhere else to live ..Manchester seems to be doing very well ! 😎
By Anonymous