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Senior Content Manager
Content specialist in office design and build.
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Manchester’s office market has sustained solid momentum through the first half of 2025. Q1 take-up in the city centre reached 320,000 sq ft, marking a 79% increase year-on-year and 40% above the five-year Q1 average, making it the second-highest Q1 on record. While Q2 was more measured, it still delivered approximately 261,000 sq ft, bringing the total take-up in H1 to just over 580,000 sq ft.
This performance builds on a strong 2024 and reflects occupiers’ ongoing appetite for modern, flexible office environments. Leasing activity continues to be dominated by Grade A and Prime space, with over 178,000 sq ft transacted in Q1 alone, much of which occurred in just a handful of large deals.
Occupiers remain focused on high-quality space in core locations such as St Peter’s Square, Spinningfields, and Circle Square, supported by a robust pipeline of demand from finance, tech, creative, and public sector organisations.
However, the market faces constraints on supply, with Grade A vacancy at just 3.3% and Prime vacancy at 1.8%, leading to increased competition for top-tier space. These dynamics are keeping headline rents firm and reinforcing Manchester’s position as the UK’s top-performing regional office market.
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Prime rent in Manchester
Prime headline rents in Manchester rose to £45.50 per sq ft in Q2 2025, up from £44.00 at the start of the year. This new high reflects sustained demand for best-in-class space and a shortage of high-quality stock in the city centre. Projections suggest that prime rents in could rise further to £48.50 per sq ft by the end of 2027.
Download The Manchester Office Rent Report to learn about our outlook for commercial space in Manchester, including a detailed map and highlights of the current trends.
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The cost of office space in Manchester 2025
Location Grade A Rent (per sq ft) Grade B Rent (per sq ft) Central Core £35.00 - £45.50 £28.00 - £35.00 Spinningfields £34.00 - £40.00 £22.00 - £26.00 Ancoats and Northern Quarter £28.00 - £35.00 £20.00 - £26.00 Piccadilly £32.00 - £35.00 £22.00 - £32.00 Salford Quays £24.00 - £27.00 £16.00 - £22.00 Media City £23.00 - £26.00 £15.00 - £21.00 Manchester Airport £23.00 - £28.00 £17.00 - £26.00 These costs are a guide provided by local commercial property experts and rent reports. These costs are updated each quarter and are subject to change.
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Vertical market activity
Manchester’s office leasing throughout H1 2025 was spread across a diverse mix of sectors, with substantial contributions from the TMT and professional services sectors. The standout letting of Q2 was Warner Brothers 48,500 sq ft takeover of 75 Trafford Wharf Road, in Salford Quays—the largest out-of-town transaction of the quarter and a key contribution to what was Manchester’s strongest out-of-town take-up period in two years.
Across the city, professional services and public sector occupiers continued to drive demand, while larger corporate and tech firms steadily added to take-up volumes. Despite the growth, prime Grade A vacancy remains tight—supporting continued demand for ESG-certified space in central business districts and digital-focused hubs such as Spinningfields, Circle Square, and MediaCityUK.
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Demand for destination offices
The demand for destination offices in Manchester continues to intensify, with occupiers prioritising buildings that combine sustainability, flexibility, and high-end amenities. Central locations such as Spinningfields, St Peter’s Square, and Circle Square remain the most in-demand areas, offering ESG-compliant space with strong public transport links and walkable access to local amenities.
Grade A availability remains extremely limited. Prime vacancy sits below 2%, and Grade A city centre vacancy is around 3.3%, which is pushing occupiers to act quickly when suitable space becomes available. With 940,000 sq ft of new and refurbished space expected over the next two years, nearly half is already pre-let, underlining continued forward-looking demand.
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What tenants want
Market activity has been dictated by greater take-up for space that is promoting stronger ESG credentials as employers are seeking higher quality space and amenities to attract teams back into the office.
Tenant aspirations for improved building amenities and sustainability accreditations have forced many landlords to refurbish their assets to enhance the offering. Several buildings have improved their communal amenities in the forms of cafes, collaboration areas and wellbeing spaces as part of active investment into these value-add facilities.
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Eden, a new development boasting Europe’s largest living wall across at New Bailey is a perfect example of this. The 115,000 sq ft building has been designed to meet the UK Green Building Council net-zero carbon in-operation targets and aims to promote wellbeing.
Landlords will continue to refurbish their space to improve the offering to new tenants and meet the demand for top office space. The expectation is that Plug and Play space will continue to be popular among new tenants and will provide landlords with an efficient solution to reduce voids and rent-free periods.
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The outlook for Manchester office space
Manchester’s office market is set to remain one of the UK’s strongest performers in the second half of 2025. The combination of robust occupier demand, a tight supply of Grade A space, and a strong development pipeline is creating favourable conditions for continued rental growth and new investment.
New developments including St Michael’s Phase One, 3 Circle Square, and The Island will inject much-needed Grade A stock into the market, helping to alleviate supply-side constraints and offering occupiers more choice. These schemes are expected to set new benchmarks for sustainability, design, and workplace experience in the city.
As hybrid working models mature, Manchester’s appeal lies in its ability to offer future-ready offices at competitive costs relative to London. Its growing base of international occupiers, strong talent pipeline, and evolving infrastructure continue to reinforce its position as the UK’s leading regional office market.
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For further advice on the city’s office market, contact our regional workplace experts in Manchester. They can guide you through both tenant and landlord markets in greater detail.
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Contact us
Get in touch to discuss your potential office space costs
020 7553 9500
info@oktra.co.uk
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