Partner Article

SMEs drive demand in Manchester office market

Despite rising activity from larger corporates, SMEs continue to drive the Manchester office market, according to national commercial property consultancy Lambert Smith Hampton’s (LSH) Manchester Office Market Pulse report.

Although overall city centre take-up fell by 29 per cent in Q2 2013 compared to Q1, smaller transactions below 5,000 sq ft dominated the market, contributing to a 49 per cent increase on H1 2012.

Adam Jackson, office agent at LSH in Manchester said: “57 of the 64 city centre office transactions completed during Q2 were SMEs acquiring workspace of 5,000 sq ft or less. It’s clear that SMEs are essential to the city centre market with 89 per cent of leasing activity originating from these businesses.”

Jackson continued: “Strong demand from SMEs is encouraging, but equally so is the increase in requirements from larger corporates looking to accommodate staff numbers of 150 or more. Crucially this occupier interest is not just driven by businesses already based in Manchester, but national corporates looking to relocate or set up in the city and wider region.”

Currently in the market is Project Sigma. Advised by LSH, this requirement will involve the creation of more than 200 new jobs. Jackson concluded: “Looking forward, if current occupier interest is sustained into 2014, Grade A accommodation from the last development cycle is set to be eroded, tipping the supply and demand balance in favour of pre-let activity in Manchester’s better positioned and consented developments.”

This was posted in Bdaily's Members' News section by Lambert Smith Hampton .