Manchester office market is challenging - report
Office occupier markets "remain challenging" in Manchester with take-up in the city centre down 28 per cent during the second quarter of the year, according to a report by Cushman & Wakefield. The commercial real estate brokers blamed "uncertainty surrounding the general election and the economy" for influencing occuper behaviour.
It adds that "with prospects for employment growth subdued there is little to suggest any significant boost to the leasing market".
The report reads: "Grade A supply decreased over the quarter reversing the increases seen over the last year. Grade A supply should move downwards over the latter part of the year as there is no speculative space currently under construction or indeed expected to go on site in the foreseeable future.
"As a result, there is some concern that a shortage of good quality space will emerge over the next 12 to 18 months."
The report said overall demand had increased by 80 per cent over the quarter rising from 371,000 sq ft to 668,500 sq ft.
Prime rents remained stable at £28.50 per sq ft in the city centre - the cheapest area was Old Trafford at £11.95 per sq ft.
