‘Watershed’ deals double Q1 office takeup in Manchester

Office space takeup in Manchester city centre more than doubled last quarter.

Total takeup reached 442,083 sq ft in the first three months of 2018, according to data from the Manchester Office Agents Forum (MOAF).

The figure, more than twice the amount snapped up in Q1 2017, was boosted by a pre-let deal at 3 New Bailey with HM Revenue & Customs totalling 157,153 sq ft – the biggest in central Manchester for more than a decade.

Q1 saw 82 transactions completed, with other notable deals including law firm Irwin Mitchell and real estate services giant CBRE taking 33,382 sq ft and 11,309 sq ft respectively at One St Peter’s Square.

Together with the 3 New Bailey transaction, the three deals accounted for 45% of the overall takeup.

The head of North West office agency at real estate consultants Cushman & Wakefield, partner Rob Yates, said: “The pre-letting of 3 New Bailey is a watershed for the city.

“We have long been of the view that the supply of quality office accommodation is constrained and savvy occupiers are having to respond to this by committing to pre-lets.”

He continued: “This deal is a significant milestone for Manchester. Not only is it one of the largest in the city for over a decade, it’s also one of the biggest regional office lettings completed in the first three months of this year.

“After a strong start we expect the final 2018 take-up figures will top 1m sq ft for the fifth consecutive year.”

Paul Mills, of Manchester-based chartered surveyors firm OBI Property Ltd, commented: “The Q1 figures for out-of-town office markets are encouraging.

“There is a good quantity of larger requirements circulating in the marketplace and we therefore expect take up to continue to be very strong during the remainder 2018.”

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