Office availiability in Manchester city centre could face a six-year low after take-up topped 880,000 sq ft in 2013, compared with 788,000 sq ft in 2012, according to the Manchester Office Agents Forum.
The increase represents a jump of 12%, with vacancy down to a five-year low of 15.3% of total space.
Some 255 deals were recorded in 2013 with an average size of 3,200 sq ft. Fourth-quarter takeup stood at 215,000 sq ft, though major deals with Barclays and Trader Media are expected to conclude early in 2014, leading to a bumper first quarter this year.
According to MOAF, availability decreased by a third in 2013, and now stands at 75% below its cycical high of 600,000 sq ft in December 2009.
Key deals in 2013 included World Pay taking 22,069 sq ft of space at 3 Hardman Square, Spinningfields , Arup taking 19,978 sq ft at Three Piccadilly Place , Jacobs committing to 23,526 sq ft of space at First Street and Travel Jigsaw signing for more than 60,000 sq ft at Sunlight House , Quay Street.
The Piccadilly market saw its highest half-yearly absorption rate since the first half of 2011, while outside the centre takeup in south Manchester fell to 589,000 sq ft – down by 70,000 sq ft, or 11% on 2012.
Salford Quays and Trafford also saw takeup drop to 193,000 sq ft in 2013, from 331,000 sq ft last year – a decline of 41.8%.
Colliers International director Rupert Barron said: “The central Manchester market continues to witness a strong level of demand for both good-quality refurbished stock and Grade A accommodation that can offer tenants increased flexibility in their workplace strategy.
“If transactions involving Barclays and Trader Media Group complete in the first quarter of 2014, we would see available space drop to a six-year low.”
Formed in 2009, MOAF includes CBRE, Canning O’Neill, Colliers International, Cushman & Wakefield, DTZ, Deloitte, Edwards & Co, GVA, Jones Lang LaSalle, Knight Frank, Lambert Smith Hampton, Matthews & Goodman, OBI Property, P3 Property Consultants, Savills, TSG Property Consultants and WHR.
chris.berkin@estatesgazette.com
