Manchester’s office market is surging. 1.22m sqft of office space was let in the city in 2024 according to Savills. Overall, that’s 29% higher than in 2023 and 17% above the five-year average.  – the highest figure since before the Covid-19 pandemic and above Manchester’s five-year average.

Richard Lowe, office agency director at Savills Manchester, said: “We saw a steady increase in activity across the Manchester office market throughout Q4, which has continued into 2025 as a result of occupiers implementing plans to relocate and expand.”

That increase saw much of the city’s best space snapped up, and led to civic leaders lamenting the fact that there may not be enough space to spur growth by 2027.

That trend continued in February with more prime spaces let to new occupiers. However, there were also some big announcements of new spaces that are set to begin construction soon to add extra capacity to the market.

Here’s our February 2025 Manchester office market summary…

Government Property Agency expands Manchester footprint

One of the stories of Manchester’s development is the growing government footprint in the city. Manchester has become a nationally influential city, and that has led to multiple Civil Service departments relocating here as part of the devolution drive.

Two more major announcements this month show that trend is not only continuing in 2025, but actually getting stronger.

Practical completion at First Street

Practical completion has been achieved on a nine-storey, £105m building at First Street which was pre-let to the Government Property Agency.

Once the fit-out is complete, the 130,000 sqft facility will house 2,600 civil servants from departments including the Ministry for Housing, Communities and Local Government, the Department for Business and Trade, OFSTED, and the Department for Education.

That number will include 150 roles relocating to Manchester from elsewhere in the country.

Ancoats Retail Park planning permission granted

On top of that, planning permission has been granted for a brand new tech-focused office complex for the Government Property Agency on the former Central Retail Park site in Ancoats.

It will support a further 7,000 Civil Service roles in Manchester from the Cabinet Office, Department for Digital, Culture, Media & Sport, Department for Education and Department for Business, Energy & Industrial Strategy.

“The new digital campus plays to Manchester’s strengths. We have fostered one of the fastest growing tech and digital communities in the UK, with a growing international reputation,” Council leader Bev Craig said.

“The transformation of this brownfield site supports our ongoing growth in the sector, which translates into quality employment and development opportunities for our residents.”

Education providers continue to take space in Manchester’s office sector

Another trend in Manchester is the mass adoption of office buildings for educational purposes. Two more deals were done in February which showcase this movement and the underlying strength of Manchester’s education sector that is powering it.

Universal Square expansion for Global Banking School

The Global Banking School (GBS) plans to more than double its footprint at Universal Square by taking a further 55,000 sqft of space.

Demand for the school’s courses keeps on growing and they plan to welcome an additional 3,800 students in the new space by 2027. That would take the total number of students at GBS to over 10,000 and reaffirm Manchester’s educational prowess.

University of Greater Manchester at City Tower

The University of Greater Manchester is also expanding in the city. Currently based in Bruntwood SciTech’s Base Building, the university now wants to add 40,000 sqft of additional space at City Tower, allowing it to take on an extra 850 students per year.

‍Next phase of Sister innovation district announced

Previously known as ID Manchester, Sister is a joint venture from Bruntwood SciTech and the University of Manchester that aims to create a world-class innovation district and neighbourhood in the city centre.

It’s a flagship £1.7bn development for Manchester and the latest phase is now out for consultation.

Importantly, it will include more than 500,000 sqft of commercial space across two towers of 12- and 24-storeys respectively. Large, flexible workspaces will be joined by leisure spaces, communal areas, a public square and heritage development.

Sam Darby, development director for Sister and Bruntwood SciTech, said: “Following the successful opening of the Renold Innovation Hub last autumn, we’re really excited to now be getting underway with the next stage of our ambitious plans. Zone C marks a significant part of the site and will truly change the face of the neighbourhood moving forward.

This is another huge scheme for Manchester and exactly what the city needs to supercharge its high tech research and innovation industry. Providing top tier tech workspaces is a great way to do that and we’re looking forward to seeing Sister built out in the future.

Investec Realis buys Citygate building on Mosley Street

Investec Realis is the latest company to buy a whole building in Manchester city centre. Citygate is currently tenanted by theSecretary of State and Barclays, but the new owner says they want to complete a sustainability-led modernisation of the building.

That will include improved amenities and refurbished common areas as they seek to “capture the asset’s significant reversionary potential”.

Tom Punch, real estate equity specialist at Investec, said: “Recent repricing and ongoing market dislocations has created a highly favourable entry point to acquire UK office assets with strong long-term fundamentals and significant reversionary potential.”

In other words, it’s yet another vote of confidence in the long-term profitability and vibrancy of Manchester’s office market from a major international investor.

Triple tenancy at Freetrade Exchange as ‘flight to quality’ continues

Speaking of which, Clearbell Capital has announced three new lettings at its Freetrade Exchange space on Peter Street.

·      Zurich Insurance has signed a 10-year lease on 4,300 sqft of space

·      Pension provider Apita has signed a five-year lease on 5,400 sqft of space

·      Nine Chambers barristers have signed a 10-year lease on 9,100 sqft

All three companies have relocated from elsewhere in the city following Clearbell’s recent refurbishment of Freetrade Exchange.

Alice Murray, head of asset management and sustainability at Clearbell Capital, said: “Our restoration of Freetrade has been an ambitious undertaking, transforming what is an iconic building, steeped in history, into a contemporary creative workspace.”

“With high demand for quality creative workspace in Manchester, and an ambition to encourage more global investment into the city centre, Freetrade was identified as a prime location for redevelopment in June 2023.”

The ‘flight to quality’ has been underway for some time in Manchester, and this is yet more evidence for the trend. Companies want higher quality, more sustainable spaces and they are willing to move to get them.

Salford tech firms doubles its footprint

Salford tech firm Voicescape has moved to Exchange Quay and signed a 10-year lease on a new 5,000 sqft workspace.

Previously located at Urban Splash’s Boat Shed, the software firm has moved with future expansion in mind.

Muhammed Shaikh, head of marketing at Voicescape, said: “Moving into ICE at Exchange Quay gives us the space for our current employees, whilst also accommodating future growth, but it’s about much more than the footprint.

“The landlord’s forward-thinking attitude and the dynamic environment makes it an ideal location for us and the environmental focus aligns with our carbon reduction ambitions. As a business we are all about using technology for the good of people and so Exchange Quay’s tenant app and resident engagement was a real draw.”

Choosing a flexible space that allows for future growth is a key strategy for tech firms selecting a new office. It’s more important than ever to align your workspace with your growth plans in the tech sector. Get it right and you can supercharge your business.

Barnett Waddingham opens its 10^th UK office, chooses Manchester

Professional services consultancy Barnett Waddingham has chosen Manchester as the location for its 10^th UK office. Their new space in Arkwright House will house a core team of professionals across a range of pensions, insurance and investment roles.

Andrew Vaughan, senior partner at Barnett Waddingham, said: “Manchester is an economic powerhouse, and our strong client base here makes it a perfect location for us to further expand our operations." 

Paul Leandro, Manchester office lead for Barnett Waddingham, added, “Manchester is renowned for its community of first-class professionaltalent, making it the ideal location to continue growing our team and delivering exceptional client service.”

It’s another feather in the cap for Manchester’s thriving professional services industry, and also an illustration of the level of talent in the city. They follow in the footsteps of many of other professional services firms which have rented Manchester office space and thrived.

Olliers doubles floor space in the city centre

Finally, criminal law firm Olliers Solicitors has just announced a move to 44 Peter Street that will see the firm double its floor space on a five-year lease.

A full fit-out is being undertaken to create the perfect environment for welcoming clients. The Northspring building also contains a full range of amenities that improve the employee experience such as a gymnasium and business lounge.

Matthew Claughton, managing director at Olliers, said: “Our move to 44 Peter Street is a testament to the exceptional progress Olliers has made in recent years.

“We have embarked on a five-year plan designed to further strengthen our position as a market leader, particularly in pre-charge investigations.”

Want to learn more about the city’s office market, or are you thinking of your next flexible, managed or leased office to rent in Manchester? Contact our team of expert office advisors today to learn more and rent office space in Manchester.

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