Figures from the commercial property adviser CB Richard Ellis (CBRE) show that more than £300 million was invested in Manchester office space during the first six months of 2010 and the outlook for office rents in the city is rated positively.
Data for the first half of this year represents a “robust recovery” of Manchester’s office space market, experts suggest, while total investment in the sector has increased by close to £270 million this year compared with the same period of 2009.
Indeed, the indicators so far this year have been so positive that CBRE expects to see 2010 finish as a record 12-month period for Manchester’s office space sector, with more than 1m sq ft likely to be taken-up.
“The recovery in Manchester has been stronger than in other regional cities as vacant space has become so limited, creating scope for real rental growth,” explained Rehan Zeman, from CBRE’s north-west office.
“Manchester has therefore become the firm favourite for investors seeking office assets outside central London,” he added.
CBRE cited Aerium’s £180 million purchase of 3 Hardman Street in the Spinningfields area of central Manchester as being the “most significant” in the city so far this year and one of the largest single prime office space transactions ever seen in the north-west of England.
Editor’s notes: In 2023, it was reported that of the ‘Big 6’ regional office markets outside London, which includes Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester, Manchester and Birmingham dominated the office building investment activity in 2022.
Office investment activity totalled £1.6 billion across all 6 markets over the course of the year with office deals in Manchester accounting for £421m or 26% of the total and Birmingham office deals accounting for £402m representing 24% of the total.