2023-07-26-莱坊-UK_Cities_Manchester_Q2_2023_1页_347kb

Manchester Office Market Summary - Q2 2023

Core Content

The Manchester office market report for Q2 2023 provides an overview of recent activity in both the occupational and investment sectors. It highlights key trends, transaction volumes, and market performance indicators, offering insights into the current state of the market.

Occupational Demand

Key Metrics

• Take up (sq ft): 179,073
• Number of Deals: 51
• Most Active Sector: Finance & Banking
• Grade A Availability (sq ft): Not specified
• Grade A Vacancy Rate: 3.1%

Notes

• All figures are based on city centre activity.
• The Finance & Banking sector remains the most active in terms of demand, indicating a strong presence and continued investment in this area.

Investment Activity

Key Metrics

• Volumes (£m): Confidential
• Qtr vs 10-Year Average: -82%
• Number of Deals: 1
• Prime City Centre: 5.75%
• Prime OOT (Out of Town): 7.50%
• Forecast Total Return (PA 2023-2027): 3.9%

Notes

• The investment volume is listed as confidential, suggesting that the specific figures may not be publicly available or are part of a private transaction.
• There has been a significant decline in investment activity compared to the 10-year average, with a drop of 82%.
• Prime city centre and out-of-town properties show different performance levels, with the prime city centre at 5.75% and prime OOT at 7.50%.
• The forecast total return for the period 2023-2027 is expected to be 3.9%, indicating a relatively low return outlook for investors.

Headline Transactions

Transaction 1: 3 Piccadilly Place

• Occupier: Arup
• Size (sq ft): 16,218
• Building: 3 Piccadilly Place
• Transaction Type: Lease

This transaction highlights the continued interest in high-quality office spaces, with a major occupier like Arup committing to a lease in a prime location.

Transaction 2: Dalton Place

• Price: Confidential
• Purchaser: Karrev
• Vendor: Tesco PF
• Transaction Type: Sale

This sale of Dalton Place underscores the ongoing activity in the investment sector, even with a notable decline in volume compared to historical averages. The confidentiality of the price suggests it may be a high-value or strategic transaction.

Key Information

• The market is experiencing a downturn in investment activity, with a significant drop compared to the 10-year average.
• The Finance & Banking sector is the primary driver of demand in the occupational market.
• Grade A vacancy rates remain low at 3.1%, reflecting strong demand for quality office space.
• The forecast total return for the investment market is modest, indicating a cautious outlook for future returns.
• Major transactions are still occurring, particularly in prime locations, suggesting that the market is not entirely inactive despite the overall decline.

Conclusion

The Manchester office market in Q2 2023 shows a mixed picture. While there is strong demand from the Finance & Banking sector, investment activity has declined sharply, with only one major deal recorded. The low vacancy rate in Grade A spaces indicates continued confidence in the market's ability to provide quality office environments. However, the forecast for total returns is low, which may reflect broader economic uncertainties or a shift in investor sentiment. Overall, the market remains active, with key transactions taking place in prime locations, but the pace and volume of investment have slowed.