Manchester office market sees strong finish to 2024
The Manchester office market delivered a robust performance in the final quarter of 2024, with figures from the Manchester Office Agents Forum (MOAF) confirming 280,598 sq ft of office space let across the City. This brings total take-up for the year to 1.22 million sq ft, exceeding the five-year average by over 100,000 sq ft and marking the strongest year for office take-up since the pandemic.
City Centre Performance
The city centre drove much of the strong performance, with 1,226,852 sq ft of office space let in the final quarter. Notable transactions 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. These deals highlight the continued demand for prime office space in the city’s key locations.
Annual Performance Highlights
Across the whole of 2024, 536,180 sq ft of office space was let in transactions of 20,000 sq ft or more in the City Centre, this is double the number of transactions over 20,000 sq ft when compared to 2023. This also represented the largest volume of such deals since the pandemic, demonstrating the city’s strong appeal to larger occupiers and businesses looking to consolidate or expand their operations.
Key Transactions of 2024
2024 saw several landmark deals, most notably the 200,000 sq ft let to Bank of New York Mellon at 4 Angel Square, NOMA, the largest UK regional office transaction in recent years. This significant deal, alongside others, contributed to Manchester’s position as a leading hub for corporate occupiers seeking high-quality office space.
Dominic Pozzoni, head of Colliers’ Manchester office commented: “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.”
Mark Bamber, partner in Knight Frank’s Manchester office commented: “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.”
Regional Market Developments
Looking beyond the City Centre, across South Manchester, Trafford, and Salford Quays, total take-up for 2024 was reported as 489,197 sq ft over 314 transactions. When considering volume of space let, the figures for these areas remain below historical averages, however, the number of transactions remains consistent, therefore indicating a continued demand for office space outside the city centre.
Outlook for 2025
Looking ahead, the Manchester office market is expected to experience a significant supply-demand imbalance. While demand for high-quality office space remains strong, evolving occupier needs are anticipated to drive further shifts in real estate strategies, with businesses placing greater emphasis on spaces that ensure business continuity and operational resilience.
Dominic Pozzoni 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.”
About MOAF
The Manchester Office Agents Forum (MOAF) is a consortium of leading commercial property agencies, including Avison Young, BE Group, CBRE, Colliers, Canning O’Neill, Cushman and Wakefield, Edwards and Co, Hallams Property Consultants, JLL, Knight Frank, LSH, Matthews & Goodman, OBI, Savills, Sixteen and TSG Property Consultants.
The Forum provides valuable insights into the office market, offering data and analysis to help shape the region’s property landscape.