Office Space Shortage in ManchesterNovember 27th, 2012 | by PaulM
A lack of office space in central Manchester is forcing bigger businesses to look toward Salford Quays and Old Trafford according to a new report from property experts.
According to the Manchester Office Report 2012, published by commercial property firm Lambert Smith Hampton, the lack of new development in recent years has led to a situation where businesses with large office requirements have been unable to secure suitable space within the city centre and this has resulted in low take-up.
In contrast, out of town areas such as Salford Quays and Old Trafford have experienced much stronger activity, with the availability of grade A office space in these area seen as a key factor in attracting tenants.
Commenting on the report, David Thwaites of Lambert Smith Hampton said:
“With grade A city centre transactions totalling only 30,361 sq ft in the year to the end of September, it is clear that the shortage of available grade A accommodation, coupled with continued uncertainty within the economy, is still deterring larger occupiers from relocating and, as a consequence, making the city’s status vulnerable.”
“The biggest deal in the city centre was a letting of 24,000 sq ft to Futureworks – normally we would have expected five or six deals of that size, or bigger.”
Despite this, Manchester city centre will see new office stock coming to market when the Fabrica scheme opens shortly.
Providing a total of 21,000 sq. ft. the Royal London Asset Management owned development will represent the city’s first speculative office space development in three years.