Rent rates and cost of office space are expected to remain as significant factors for tenants in the decision making process but emerging trends show that businesses are not willing to compromise on quality of space.
Cost has been highlighted as one of the primary focuses, however employee experience and building offering has now become priority. The decision to move to quality, Grade A space is expected to push rates up as tenants continue to turn away from lower quality property. With availability still low in the city, occupiers are steering the market which will force more landlords and asset managers to refresh and renew their properties.
Manchester has established itself as the fastest growing tech city in Europe, with the sector already worth over £5bn to the UK economy. With the promise of a growing talent pool within the city, more big players are committing to Grade A space with plans to occupy during 2022. This rich talent resource in central Manchester has driven TMT and creative sectors to increase their activity in several key deals above 10,000 sq ft in 2022. Professional Services has also experienced a growth in demand for space with their activity accounting for 20% of demand.