Take-up

Take-up in Manchester during the first quarter of 2025 totalled 319,995 sq ft and was achieved through 53 transactions. Take-up was 79% higher than the same period in 2024, and also 40% and 24% higher than the five- and ten-year Q1 averages. This was also the highest Q1 take-up since 2018 and the second highest on record for the market.

Grade A and Prime combined take-up during Q1 totalled 178,399 sq ft across six transactions. This was 150% higher than the five-year average Q1 combined Grade A and Prime take-up and also the highest since 2018.

Supply

Availability at the end of Q1 2025 stands at 3.1 million sq ft, an increase of 5%. Due to Savills increasing the total office stock within Manchester to accommodate new buildings, the vacancy rate is now 11.7%, a decrease of 40 basis points (bps) on the previous quarter. Secondary stock accounts for 55% of availability, by totalling 1.7 million sq ft.

Grade A and Prime availability now total 899,429 sq ft and 493,378 sq ft, respectively, with both remaining on par with the previous quarter. The Grade A and Prime vacancy rates are now 3.3% and 1.8%, a decrease of 20 bps and 10 bps.

Take-up by business sector

The most active business sector during Q1 2025 was the 'TMT' sector, which leased a combined total of 151,991 sq ft, the largest quarter since Q4 2021, and accounted for 48% of the total take-up. There were 12 TMT deals in the quarter, the largest of which was acquired by Autotrader, for a total of 130,000 sq ft at 3 Circle Square. The deal was the sector's third largest on record.

Another notable sector was the 'Public Services, Education and Health' sector, which accounted for 21% of take-up. This was through eight deals totalling 65,807 sq ft – with Elizabeth School of London being the largest letting by acquiring 24,780 sq ft in Arthur House.

Prime headline rent

The Prime headline rent in Manchester currently stands at £45 per sq ft and was achieved in Q4 2024 at No. 1 St Michael’s. The erosion of Prime supply has led to increasing demand for Grade A refurbished buildings, resulting in rental growth within the refurbished sector of the market. The current lack of ‘trophy’ space limits the opportunity for transactions that will significantly grow the Prime headline rent in the near future. Given the lack of Prime available accommodation, Savills anticipates larger occupiers will look to agree pre-lets in the coming months, leading to an upward step change in rents to c.£54 per sq ft, which would enable developers to commence construction of new Prime product.

Interested in other areas of the UK?

View all of our latest Q1 2025 Occupational Office Data research here.