Office leasing activity in Manchester reached 1.22m sq ft last year, exceeding the five-year average by more than 100,000 sq ft, according to the latest data from the Manchester Office Agents Forum (MOAF).
It was the strongest year of office take-up since the pandemic and the figures were boosted by deals totalling 280,598 sq ft in Q4.
Notable transactions in Q4 included Channel 4’s acquisition of 12,200 sq ft at St Michael’s and Virgin Media’s lease of 45,000 sq ft at the Island development on John Dalton Street. The largest deal of the year was the 200,000 sq ft letting to Bank of New York Mellon at 4 Angel Square, NOMA (pictured).
Dominic Pozzoni, head of Colliers’ Manchester office, said: “The performance of Manchester’s office market in 2024 was highly encouraging, with take-up surpassing the five-year average and signalling a strong recovery post-pandemic. The demand for larger office spaces, as seen by Bank of New York Mellon transaction, highlights the city’s appeal to major occupiers looking to establish or expand their footprint in the region.
He added: “The outlook for 2025 indicates continued sustained demand for Grade A office space. Occupiers are increasingly prioritising business continuity and operational resilience, which will influence their real estate decisions. This shift, coupled with ongoing investor activity in prime locations, is expected to drive rental growth, particularly in the city centre and other key regional business hubs. Limited speculative development in the pipeline further exacerbates the supply-demand imbalance, suggesting that competition from occupiers for the best office spaces, will intensify.”
Mark Bamber, partner in Knight Frank’s Manchester office, said: “2024’s strong performance illustrates the continued demand for best in class office space providing the highest level of occupier amenities and the greenest environmental credentials.”
