2015 was the year that put Salford Quays back on the map as an office location. Lettings skyrocketed to 582,477 sq ft – an incredible 283 per cent up on 2014 and 159 per cent up on the 10-year average.

While figures were boosted by a 142,000 sq ft pre-let to BUPA at Harbour City and a 106,000 sq ft letting to TalkTalk at the Soapworks, smaller deals are on the rise, too. In 2014, there were just two deals over 10,000 sq ft, compared with 10 deals by the end of Q3 2015 alone.

This increased activity has been driven by occupier appetite for schemes which have been refurbished after a period of being a little unloved, such as Exchange Quay where Sage recently took 27,700 sq ft.

One of the key selling points for Salford Quays remains its ability to offer very good office accommodation at a competitive price compared with the city centre where rents have risen considerably. During the last recession we saw a lot of discounting in the latter to get deals across the line, which meant there wasn’t much of a differential in pricing. However, we now have a decent rental gap between the Quays and the city centre, with prime Grade A rents standing at £24 per sq ft and £34 per sq ft respectively.

That’s not to say that Salford Quays has not seen any rental growth – at Exchange Quay rents rose by 10 per cent following the refurbishment by landlord Hunter.

With 2016 in full swing, there is a degree of cautious optimism regarding rent rises among landlords as they know that the Quays will lose one of its USPs should the market get too hot. The crucial factor now will be preserving that rental balance with the city centre.

Further information

Contact Savills Office & Business Space