2024-01-19-莱坊-UK_Cities_Manchester_Q4_2023_1页_314kb

Manchester Office Market Q4 2023 Summary

• Occupational Investment: Take up reached 400,000 sq ft, reflecting high demand in the market.
• Construction Investment: Under construction schemes focus on speculative projects with 71% of investment, including 263,071 sq ft in let transactions.
• Market Activity: Demand increased by 17%, driven by professional services occupying 208,595 sq ft, while vacancy rates stood at 3.55%.
• Transactions and Values: Average deal value was £180.5m, with examples like Eden BDO purchasing 23,017 sq ft for £137.5m, indicating strong market activity.
• Investor Trends: Overseas investors account for 52%, followed by private equity (15%) and property companies (33%), with prime yields at 6.25% in Q3 2023 and forecasted increases.
• Rent and Forecasts: Prime rent is £43.00 per sq ft, expected to rise to £44.00 by 2024 end, with overall market yields projected to increase.
• Grade A Market: Strong performance in Grade A space with tight vacancy and investor interest supporting price stability and potential appreciation.