Office take-up in totalled 446,200 sq ft in Q1 2026 across Manchester City centre, South Manchester, Salford Quays and Warrington, 25% below Q4 2025 and 15% below the 10-year average. This was despite very positive take-up for floorplates under 10,000 sq ft, with take-up for larger floorplates falling below historic averages.
The largest deal saw the Government Property Agency (GPA) let the entirety of the 110,000 sq ft Havelock, formerly occupied by Eversheds, ahead of the planned establishment of an 800,000 sq ft Manchester digital campus in 2032. This deal accounted for 40% of take-up, with only 1 other deal transacting above 10,000 sq ft.
Office vacancy fell 40 bps to 11.2%, partly driven by grade A absorption with grade A vacancy falling 10 bps to 3.4%. No new space is due to be completed in 2026, although 1m sq ft of new space is scheduled for completion over 2027 and 2028.
Prime rents in Manchester remained flat at £45 per sq ft, 8% greater than the Big Nine average. However, with limited Grade A supply coupled with strong demand for best in class we anticipate £50+ per sq ft being achieved before the end of the year. Rent-free periods remained at 27 months for a 10-year lease.