With approximately 625,000 sq ft of office space being refurbished in Manchester over the next two years, the sector is currently thriving and continues to see healthy levels of take up, according to Savills.
The firm has reported that over the last 10 years Grade B space has accounted for an average of 62% of Manchester’s annual take up, which could go even higher in 2016 as Grade A supplies are running low, resulting in landlord and occupiers looking to ‘plug the gap’.
Grade A office space in the city over the last three years has had growing demand, however, annual take up is always under pinned by the appeal of Grade B space from occupiers who seek a balance of high quality offices with value for money. The increased competition for space has resulted in an increase in secondary rents.
Commenting on the reports, James Evans, head of Savills Manchester, says: “This year’s winners will undoubtedly be landlords who can deliver space to the market quickly and therefore capitalise on the current under supply across all sectors.
“Opportunities for large-scale occupiers within the Grade B market are very limited and with continued growth forecast for the financial tech sector in particular, buildings which can provide flexible and interesting workspaces will succeed.
“However, solid fundamentals remain key and large floor plates in accessible locations will continue to perform very well.”
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