Manchester office market stays resilient as demand for Grade A space grows

Manchester’s office market has started 2026 on a steady footing, with activity across both the city centre and out-of-town markets reflecting resilient occupier demand. Despite ongoing global uncertainty, sentiment remains cautiously positive, supported by a strong pipeline of enquiries and continued focus on high-quality space, with performance varying across different submarkets.

Marcus Baumber, Senior Surveyor at Fisher German, believes this resilience reflects the city’s strong fundamentals and continued occupier focus on best-in-class space.

“Despite the global backdrop, sentiment in Manchester’s office market remains positive, underpinned by strong fundamentals and continued occupier demand across both the city centre and wider out-of-town markets. We’ve seen a solid start to the year, which provides a good platform for the months ahead.

“Take-up reached 286,000 sq ft across 51 transactions in the city centre during Q1, broadly in line with the five-year average, although down on the same period last year.

“A large proportion of this was driven by a single standout deal, with the Government Property Agency taking 114,000 sq ft at Havelock, accounting for around 40% of total take-up. Other notable lettings included X+Why at The Hive and Sheppard Robson’s move to Pall Mall.

“Activity has largely been driven by smaller transactions, with the majority of deals under 5,000 sq ft. This highlights continued confidence among SMEs, which remain a key driver of the Manchester market.

“One of the defining trends remains the ‘flight to quality’. Occupiers are still prioritising high-quality, fully fitted and flexible space, with speed of occupation and cost certainty playing a key role in decision-making.

“As a result, demand is focused on best-in-class space, particularly Grade A offices that can meet modern occupier expectations.

“That’s being further intensified by a constrained supply of new-build Grade A space. With no new developments completing in 2026, competition for the best space is increasing.

“This is expected to drive continued rental growth, with deals currently under offer at around £50 per sq ft and prime headline rents likely to reach £55 per sq ft by year-end.

“For landlords and developers, this creates a clear opportunity. High-quality, well-located and fully fitted space is outperforming the rest of the market, while the lack of new supply is placing greater emphasis on refurbishing and repositioning existing stock to meet occupier demand.

“Across the wider market, performance has been more varied. South Manchester has seen a reduction in take-up year-on-year, while Salford Quays and Trafford have recorded improved

activity, reflecting continued resilience in out-of-town locations and sustained demand beyond the city centre core.

“Looking ahead, there is a strong pipeline of enquiries, including a number of larger requirements from both existing occupiers and new entrants, which are expected to come forward later in the year.

“While some occupiers may take longer to make decisions in the current climate, the underlying market remains robust. With a strong talent pool, excellent connectivity and sustained demand for high-quality space, Manchester is well placed to maintain momentum through the remainder of 2026.”