Take-up

Manchester take-up in Q3 2024 totalled 432,619 sq ft across 51 transactions in the quarter. This was 23% higher than the same period in 2023, and 67% and 45% higher than the five- and ten-year Q3 averages, respectively. Q3 also saw the highest quarterly take-up since Q2 2019. Q1–Q3 2024 take-up totalled 943,504 sq ft, 28% higher than Q1–Q3 2023.

Grade A and Prime take-up in Q3 2024 totalled 324,358 sq ft, 76% higher than Q3 2023 and consequently accounts for 75% of overall take-up. Year-to-date Grade A and Prime take-up totals 675,589 sq ft, which accounts for 72% of the total.

Supply

Manchester's total availability at the end of Q3 2024 stands at 3.1 million sq ft, 0.3% lower than the previous quarter. The overall vacancy rate has also decreased by 10 basis points to 12.4%, which demonstrates continued occupier demand within the market.

Grade A and Prime availability totals 1.6 million sq ft, which is on par with the previous quarter. The Grade A and Prime vacancy rate has increased marginally in Q3 2024, and now stands at 6.38%. Grade A and Prime individual vacancy rates are 3.0% and 3.4%, respectively.

Take-up by business sector

The 'Banking' sector acquired 200,000 sq ft during Q3 2024, accounting for 46% of the total; however, this was dominated by the letting of 196,443 sq ft to Bank of New York Mellon at 4 Angel Square. This was the largest deal in Manchester since 2018, and the largest in the region for four years.

Another notably active sector during Q3 2024 was the 'TMT' sector, which accounted for 28% of the total by leasing a combined 120,000 sq ft. The largest deal of the sector saw ARM acquire 69,000 sq ft at No. 1 St Michaels.

Prime headline rent

The Prime headline rent in Manchester remained at £44 per sq ft in Q3 2024 compared to £43 per sq ft in Q1 2024. We expect a new headline rent of £45 per sq ft to be set in Q4 2024, with a transaction understood to be close to completion at this figure. Due to significant rental growth over the previous five years and a constrained supply of best-in-class space, looking at further projections over the next five-year period, we anticipate there will be considerable rental growth of 18%, with rents of £52 per sq ft set to be achieved by 2028.

Interested in other areas of the UK?

View all of our latest Q3 2024 Occupational Office Data research here.