Manchester’s office market has experienced remarkable growth in 2024, with take-up reaching 1.22 million square feet—29% higher than 2023 and 17% above the five-year average. You’ll find Grade A and Prime spaces dominating transactions at 71% of all leases, while the TMT sector leads demand at 23% of total take-up. As vacancy rates drop to 12.1% and major corporations like Bank of New York Mellon secure significant space, investor confidence continues to strengthen in the UK’s top regional market.
Despite lingering economic challenges across the UK, Manchester’s office market is experiencing a remarkable resurgence in 2024. Office space take-up has reached 1.22 million square feet, representing a significant 29% increase over 2023 and 17% above the five-year average. This performance has established Manchester as the leading regional office market in the country.
You’ll find the final quarter of 2024 contributed substantially to this growth, with 280,598 square feet of lettings. This helped drive the strongest annual performance the city has seen since before the pandemic. City center transactions have been particularly robust, with approximately 1.23 million square feet leased throughout the year.
Major corporations are demonstrating renewed confidence in Manchester. Channel 4 secured 12,200 square feet while Virgin Media leased 45,000 square feet in prime developments. Significantly, transactions of 20,000 square feet or larger doubled compared to 2023, with over 536,000 square feet leased in these larger deals. The Bank of New York Mellon transaction of 200,000 square feet at 4 Angel Square stands as the most notable deal of the year. Throughout 2024, the TMT sector dominated market activity, accounting for 23% of total take-up with 271,918 square feet leased.
The market’s supply indicators further confirm this positive trend. Total office availability stands at approximately 3 million square feet, down 2% from the previous quarter. The overall vacancy rate has declined by 30 basis points to 12.1%, while premium space availability has dropped even more sharply.
Grade A and Prime office take-up reached an all-time record of 872,204 square feet in 2024. These high-quality spaces represented 71% of all transactions, clearly showing occupier preference for superior workplace environments.
You’re seeing Manchester benefit from “north shoring” as London-based companies relocate operations to reduce costs while accessing the city’s talented labor pool. Despite broader economic uncertainties, Manchester’s office-based employment has grown by approximately 0.1%, outperforming UK averages.
For investors, the combination of rising take-up rates and shrinking vacancy in premium buildings has boosted confidence in the market. Manchester’s competitive costs relative to London, coupled with strong demand fundamentals, position the city’s office market for continued growth through 2025.
Frequently Asked Questions
How Do Manchester Office Rents Compare to Other UK Cities?
Manchester office rents are substantially lower than London’s, typically at half the cost.
Prime Grade A space in Manchester averages £35-£45 per sq ft, while London commands £60-£80+.
You’ll find Manchester’s flexible workspace desk rates around £370, compared to London’s £600+.
Manchester remains competitive with other major UK cities, where prime rates generally range from £30-£40 per sq ft.
The city’s 2.3-3% annual rent growth aligns with regional averages of 1-3%.
What Environmental Certifications Are Landlords Pursuing for New Developments?
For new developments, you’ll find landlords primarily pursuing BREEAM certification, with over 76% of premium Manchester offices having this rating.
Energy Performance Certificates (EPCs) are legally required and increasingly important as efficiency standards tighten.
Additionally, WELL and SKA certifications are gaining traction, focusing on occupant health and sustainable fit-outs respectively.
These certifications help buildings command premium rents and attract environmentally conscious investors, while avoiding the “brown discount” affecting less sustainable properties.
Are Co-Working Spaces Growing in Manchester’s Business Districts?
Yes, you’ll find coworking spaces are experiencing significant growth across Manchester’s business districts.
Colony reported a 30% increase in coworking memberships in Q1 2025, with locations like One Silk Street and Piccadilly exceeding capacity at 105% and 133% respectively.
The planned Spring Gardens location in Manchester’s Banking District responds to this demand.
With the UK coworking market projected to reach $1.44 billion in 2025, Manchester’s spaces are attracting tech companies, startups, and remote workers seeking flexible arrangements.
Which Foreign Investors Are Most Active in Manchester’s Office Market?
You’ll find that specific foreign investor names in Manchester’s office market aren’t explicitly identified in the available sources.
However, investment patterns show activity from global private equity firms backing co-working operators, multinational financial institutions, and tech companies.
Cross-border capital increasingly targets Manchester over London, with investors attracted by higher yields, Grade A supply constraints, and strong leasing fundamentals.
Currency advantages make GBP-denominated assets particularly appealing to USD and EUR-based investors amid current market conditions.
How Has Remote Work Affected Office Space Demand in Manchester?
Remote work has transformed rather than diminished Manchester’s office market.
You’ll find demand remains robust, with take-up in 2024 exceeding 2023 figures by 29% and surpassing the five-year average by 17%.
The market has evolved to favor Grade A and Prime spaces designed for hybrid working, accounting for 71% of total take-up.
Businesses now seek flexible, multipurpose environments that balance remote capabilities with collaborative spaces, prioritizing employee wellness and productivity.
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