Mixed outlook for Manchester commercial property
Published on
24/10/2011 11:22:08
A report from the Manchester Office Agents' Forum indicates that
although Manchester's city centre office market is beginning to
slow, rents are on the increase.
The investigation reveals the amount of office space let during
Q3 2011 was down year-on-year by as much as 40 per cent. However, a
separate report from Drivers Jonas Deloitte's quarterly Office
Market Review indicates a modest increase in rental income, with
Grade A office space in Manchester city centre rising by 50p to £29
per sq ft.
However, a nationwide scale, recent figures from the Royal
Institution of Chartered Surveyors suggests the UK commercial
property market has declined in Q3 2011 following global economic
anxieties.
The outlook remains positive for Manchester office space to let
however, with Alex Russsell, associate partner at WHR Property
Consultants and spokesman for the Manchester Office Agents Forum,
believing Manchester is one of the primary areas to do
business.
"Whilst there has been a slight fall in take up in the third
quarter of this year compared to the previous one, this was not
unexpected and is typical of the time of year in any market when
the summer months are always quieter," he said.
"However, occupier demand has remained steady with us already
seeing a significant increase in new enquiries during September and
October.
"Good quality second-hand accommodation remains high on
occupiers' agendas and with little Grade A new build available this
is not unexpected.
"Although we are also seeing an increasing surge in budget
accommodation lettings with sub-2,000 sq ft deals being the most
sought after.
"The outlook is positive and with major deals such as the KPMG
letting set to formally exchange in the coming weeks, the end of
the year take up results are set to be better than forecasted -
particularly when compared to other UK regional cities, proving
that Manchester is the place to do business."
Image: gastemp