Manchester’s historic preference for small-scale office requirements is being reversed, according to new research.
Seven deals for more than 20,000 sq ft have taken place in the city so far this year, compared with 10 during the whole of 2014, according to Colliers International.
Some 60% of space let in Q1 was for suites in excess of 5,000 sq ft , with that figure rising to nearly 65% in Q2.
Manchester director Peter Gallagher said the findings represented a significant reversal of a historic trend.
“In 2014, about 80% of all the space let in central Manchester was for office suites of less than 5,000 sq ft. This year the situation so far shows a dramatic change in that pattern.
“As there is a significant number of large occupier requirements in central Manchester still to be satisfied, it may be that the city is becoming more of a large office suite market.”
According to Colliers, Manchester has seen 668,000 sq ft of take-up across 152 deals in the first half of the year, with take-up reducing availability by 43% to 131,393 sq ft.
The bulk of take-up – 436,443 sq ft – was in Salford Quays, including a 145,000 sq ft prelet to health and social care firm Bupa, first revealed by Estates Gazette in January.
Talk Talk also relocated to a 106,000 sq ft suite at Soapworks.
Availability is at its lowest level since before the downturn in 2007, and this looks set continue until 782,000 sq ft of new space is delivered in 2017.
Available office space in south Manchester and Warrington stood at 294,331 sq ft and 143,284 sq ft respectively.
The average rent for prime central space in Manchester has risen to £34 per sq ft.
