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March 27, 2025
Alex Timperley
5 mins
We are in a traditionally quiet period at the end of the financial year, and that gives us time to reflect and take a wider view on Manchester’s office market.
A lot has happened in the last six months, including:
· St Michael’s attracting some of the biggest businesses in the country to Manchester
· We saw take-up at the end of Q4 2024 was 63% higher than the fiver-year average
Those were just some of the highlights, but they don’t hide the fact that it’s a tough market at the moment for both building operators and businesses.
More reflections follow in this month’s Manchester office market summary, along with new space opening, improvements to existing buildings and a major move in the city.
The Deloitte Manchester Crane Survey is one of the annual milestones everyone in the city’s property sector looks forward to. The 2025 edition delivered interesting news for everyone interested in offices.
The overall amount of refurbished and expanded office space in Manchester is now 32% higher than it was a year ago. In total, there is approximately 1.6m sqft of space of this type already completed in 2025, or still under construction.
That underlines research from OBI released this month which shows 70% of office relocations in Manchester in the last year were companies looking to expand their footprint rather than shrink it.
Hybrid working is being embraced in Manchester and companies are still growing their offices – it’s the best of both worlds and demonstrates the strength of Manchester’s economy and business community, even in a tougher time.
Deloitte also notes that there is another 1.5m sqft of new office floorspace in construction in Manchester that includes various pre-let spaces and co-working occupiers who are ready to operate the new buildings.
That is timely news. Just two months ago Andy Burnham, the Mayor of Greater Manchester, aired concerns that there would not be enough new office space available by 2027 to enable Manchester’s continuing growth.
For companies looking for new office space to rent in Manchester over the next 18-24 months, this should be a relief.
M&G’s £12.5m refurbishment of Aviary at 58 Mosley Street has been completed this month. It brings 110,000 sqft of space to Manchester, and it does so in a sustainable way that aligns perfectly with what modern businesses and employees want.
Firstly, refurbishing rather than demolishing and rebuilding has resulted in 69% fewer carbon emissions.
The new space is also net zero carbon in operation, on track to achieve a NABERS 5-star rating, BREEAM ‘Excellent’ certification, and has an EPC A rating.
New facilities include a communal roof terrace, a pavilion overlooking the Town Hall, a gym with exercise studio and a business lounge.
The ‘flight to quality’ in Manchester is well underway and there is not enough supply of sustainable, Grade A space to meet that demand. That makes Aviary an extremely welcome addition to the market.
Matt Shufflebottom, director at CBRE, said; “To have more than 100,000 sqft of Grade A space of this calibre landing in Manchester’s central business district is very welcome news for the supply-constrained office market.
“The attention to sustainability and tech within the building will appeal to occupiers seeking best-in-class space in the city centre.”
Accountants and business advisor DJH has relocated its specialist corporate finance team from St Ann’s Square to the company’s main office on Peter Street as part of an office expansion.
The firm has expanded its existing office space at St. George’s House to accommodate the team and now employs more than 200 people across the region.
“We’re now focusing on tapping into the business renaissance in the region and the government’s desire to maintain the Northern Powerhouse agenda by building up a strong pipeline of talent to help us facilitate further expansion,” said Scott Heath, chief executive.
“Manchester is one of the UK’s fastest-growing economic hubs outside of London, with significant investment in technology, media and manufacturing.”
It’s another demonstration of how strong the professional services sector is in Manchester. Put simply, this is a great time to be in thecity.
As we look ahead to the new financial year and the rest of 2025, there’s no hiding that Manchester’s office market is in a tough spot. However, there are also signs that the market should start looking up in the months and years to come.
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