The Manchester office market saw around 490,000 sq ft of letting deals during the second quarter.
The first half of the year saw a total of 805,000 sq ft transacted, an increase from 757,000 sq ft in H1 2018, according to the Manchester Office Agents Forum (MOAF).
Serviced and co-working operators were the stand-out performers in Q2 2019 with WeWork acquiring 51,000 sq ft at Hyphen, Mosley Street and Spaces (Regus) acquiring 125 Deansgate in its entirety. At 122,000 sq ft, the deal to Spaces represents the largest transaction of the year so far.
Other significant transactions include WPP acquiring 82,000 sq ft at Enterprise City and Barclays expanding by 33,000 sq ft at Piccadilly Place.
The supply of grade-A office accommodation remains at a record low which has led to further rental growth in both the grade-A and grade-B refurbished markets. Prime rents of £36.50 per sq ft have been achieved in the first half of 2019 with further rental growth expected as the Manchester office market continues to exceed expectations.
Scott Shufflebottom, associate director in Colliers International’s national offices team said: “Despite uncertainty in the property market being a recurring theme since the 2016 referendum, the Manchester office market has continued to prosper and has achieved unprecedented levels of take-up and rental growth, showing great resilience and further underpinning its position as the second city.”
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