Take-up

Take-up in Manchester during the first half of the year totalled 581,542 sq ft and was achieved through 102 transactions, the same number as H1 2024. Take-up was 32% and 10% above the five- and ten-year H1 averages, and 14% above the H1 2024 total. This was also the largest first half of the year since 2019. Q2 2025 take-up totalled 261,547 sq ft, 24% above the five-year Q2 average. Of this, eight deals were over 10,000 sq ft in Q2.

Grade A and Prime take-up totalled 328,980 sq ft and accounted for 57% of the total. This was achieved through 21 transactions; it was also the highest H1 Grade A and Prime take-up since 2019.

Supply

Overall availability at the end of Q2 2025 stands at 2.9 million sq ft, a decrease of 6% on the previous quarter. This means the overall vacancy rate has also decreased by 60 basis points to 11.1%. Secondary stock accounts for over half of the total.

Grade A and Prime availability total 819,687 sq ft and 565,768 sq ft, respectively. Whilst Grade A availability has decreased by 9%, Prime has increased by 15% compared to Q1 2025. The respective vacancy rates stand at 3.1% and 2.1%.

Take-up by business sector

The most active sector in Manchester during H1 2025 was the 'TMT' sector, which leased a combined total of 240,126 sq ft, accounting for 42% of the total. The largest transactions of the sector in Q2 were Softcat, which leased 35,000 sq ft at Manchester Goods Yard, and Havas, which leased 31,000 sq ft at 3 Circle Square.

Another active sector during H1 2025 was the 'Public Services, Education & Health' sector which accounted for 14% of the total. The sector leased a total of 81,978 sq ft, which accumulated through 16 transactions. The largest of these was acquired by Elizabeth School of London, totalling 24,780 sq ft at Arthur House during Q1 2025.

Prime headline rent

The Prime headline rent in Manchester currently stands at £45 per sq ft and was achieved in Q4 2024 at No. 1 St Michael's, with the city seeing 20% of Prime rental growth over the previous five years. However, as demand for office space in Manchester continues its upward trajectory towards pre-Covid levels of leasing and continues to outperform other Big 6 regional cities, this has led to developers reigniting their appetite for speculative developments. This is exemplified through Landsec, which has commenced construction of The Republic in Mayfield, a 243,000 sq ft office building spread across 13 floors, and subsequently the first new-build office to commence in the North West this year (Q1 2028 completion date). The scheme will be commanding rents in excess of £50 per sq ft due to its expected sustainability ratings and high-quality office fit out, along with sitting in Mayfield Park.

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