Office vacancy levels in central Manchester are at their lowest for a decade, according to a recent survey by Jones Lang LaSalle.
The dearth of offices in the city centre has been exacerbated by the number of consents for change of use from office to residential and the lack of speculative development.
The report confirms that supply has decreased by 6.5% since the start of the year and is down 17.5% on the same point last year. However, total demand in south Manchester, Salford Quays and the city centre has increased to over 376,000 sq m (4m sq ft).
Andrew Shaw, director at JLL, in Manchester, said: “South Manchester still remains the strongest north west region office investment market, both in terms of rental growth expectations and depth of institutional demand. Prime yields have hardened from 6.75% to 6.5%”
EGi News 06/11/00
