McGuireWoods London partner Callum Hassall provided insights on Manchester’s emergence as a leading regional office market in a Nov. 21, 2024, article in Institutional Real Estate Inc.
Hassall cited recent large office deals and positive sentiment among prime office landlords and letting agents as evidence of Manchester’s appeal, which he attributed to the city’s growing economy, favorable demographics, tight supply and decentralized government. According to the article, the Manchester Office Agents Forum expects more than 1.3 million square feet of office space to be let in Manchester in 2024, exceeding the 5- and 10-year averages for the market.
Hassall, who leads the firm’s London real estate team, said the demand for prime office space is outpacing the available supply, which could have a dramatic impact on rents.
“At the beginning of this year, property agents were relatively confident that, over the next few years, headline rents in Manchester would hit £50 per square foot,” he said. “Now they’re even more confident and I suspect that we will hit this level sooner considering the scarcity of supply.”
Hassall said Manchester’s student population and rising number of young professionals and entrepreneurs are major selling points and make Manchester well-positioned to outperform other U.K. regional markets. The city’s government structure is another asset, he said.
“One of the things that Greater Manchester does incredibly well is devolution which provides more autonomy in areas in such as transport, planning and health,” he said. “It’s also a place which has embraced regeneration which has been transformative and has cemented Manchester’s status as the United Kingdom’s second city.”