Demand for Manchester’s office space remains strong as more than 1m sq ft of office take up has been recorded so far this year.
According to Manchester Office Agents Forum (MOAF), 295,379 sq ft of office take up was recorded in Manchester city centre during Q3 of this year, putting total take up for the year to date at 1.1m sq ft.
This latest figure has resulted in total take up for Q1-Q3 of 2019 exceeding the five year average for the same period, with 2019 predicted to be another strong year of city centre take up following a record 2018.
MOAF reports that 71 office deals completed in the city during Q3, higher than the number of deals in Q1 and Q2, with the largest being 35,476 sq ft let to Marker Study at M&G/Intu’s Arndale House.
Other notable deals include 27,723 sq ft let to Capita Business Services at Helical’s Lee House and 26,259 sq ft to Regus at BA Pension Fund’s St James’s Tower.
Andrew Cooke, associate of the office agency team at Savills Manchester, said: “After a very strong first half of the year, office take up in Manchester city centre has remained robust in Q3 with a significant number of lettings to a broad range of occupiers. Despite the ongoing political and macro-economic uncertainties, occupational demand remains positive, with 2019 set to be another strong year for city centre take up.”
Outside of the city centre, Salford Quays and Trafford reported its strongest quarter of the year to date at 81,710 sq ft, bringing the total for year so far to 204,033 sq ft.
September alone saw 15 deals transacted, with the largest being 20,700 sq ft to The Doctors Laboratory at Regents Court.
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Steve Brittle, senior associate at Matthews & Goodman adds: “Following a strong first half year, lettings in Salford Quay and Trafford have remained buoyant in Q3 which is demonstrated by the number of deals transacted. With demand remaining encouraging and the quantity of existing requirements in the marketplace we should continue to see strong take up during the final quarter of the year.”
In the South Manchester market, 131,436 sq ft was taken bringing the total for the year to 408,707 sq ft, which is significantly below the equivalent period for 2018.
MOAF puts this down to 2018 being a ‘record breaking’ year.
However there continues to be pent up demand in the South Manchester market with several high-profile transactions due to complete in Q4.
Significant deals in Q3 include, The Lakehouse in Cheadle with ME Group Holdings taking 37,130 sq ft and Dow Chemical Company committing to 24,715 sq ft at Oakfield 4 Cheadle Royal Business Park.
Elsewhere, Warrington also recorded its strongest quarter of take up so far for 2019, with 87,168 sq ft transacted in Q3. The year to date now totals 190,937 sq ft, with the largest deal for this quarter being 13,600 sq ft let to Ainsworth Projects at The Academy.
Formed in 2009, MOAF members include Avison Young, BE Group, CBRE, Colliers International, Canning O’Neill, Cushman & Wakefield, Edwards & Co, GVA, Hallams Property Consultants, JLL, Knight Frank, LSH, Matthews & Goodman, OBI Property, Savills, Sixteen Real Estate, and TSG Property Consultants.