Law firm Freshfields Bruckhaus Deringer has launched the largest office requirement in Manchester, moving some London-based staff out of the capital to cut costs.
The global firm, which employs 1,300 people in the UK, has instructed Knight Frank to look for 100,000 sq ft in the city centre.
Freshfields currently occupies 230,000 sq ft at the Malaysian Employees Provident Fund’s 65 Fleet Street, EC4, its headquarters since 1989.
Its lease expires in 2020.
A formal requirement is expected to hit the market next month, but the firm has already earmarked One and Two St Peter’s Square, Allied London’s Cotton Building, Ask Developments’ 101 Embankment, English Cities Fund’s One New Bailey and NOMA’s Hanover Building as potential targets.
As part of the plan, codenamed Project Green, staff could be moved in phases starting next year and completing in 2018.
Prime Manchester grade-A rents are close to £30 per sq ft, which is less than half the average prime rent in London’s Midtown legal district.
Several law firms have previously explored similar cost-cutting measures, albeit on a smaller scale. Latham & Watkins is already looking for 10,000 sq ft in Manchester.
A source said: “This is something that people are increasingly looking at because rents are nearing record highs across most London submarkets and they are likely to grow further over the next three years.”
The requirement could be a major boost to the Manchester office development market, with several of the earmarked schemes awaiting a prelet before construction can start.
