Recent figures released from JLL reveal the extent of Manchester’s thriving economy. At the annual north-west property update the real estate firm revealed that Manchester has had the most office-take up for over 15 years, in fact since JLL began recording such data. This places it firmly at the forefront of regional cities.
Manchester’s tech industry was the leading driver for this increased demand for office space, as befits the UK’s tech capital outside of London. With a 54% increase on the 10-year average newly occupied office space totalled 1.75 million sq ft last year, creating the best year on record.
Elaine Rossall, UK head of offices research at JLL, stated: “When thinking of the UK’s strongest property markets, Manchester continues to be in a league of its own. Job creation is at record levels and is spread across a range of sectors. Commercial development is increasingly catering to occupier demand and this is translating into positive, continued growth across the other property markets.
“The current strength is also against a backdrop of the UK economy performing better than expected in the run up to Brexit, with Manchester really bucking expectations.”
Manchester has a diverse and rapidly growing economy and the large range of job’s available in the cities market has meant that it has seen the largest wage growth since 2008. Furthermore Manchester city centre is expected to have gained an additional 10,000 office employees by 2021. This makes Manchester one of the top ten fastest growing places for jobs in law, finance, management consultancy and advertising outside London.
This growth in the economy has had a clear and positive impact on Manchesters industrial, office and residential property markets, and the rapidly expanding sectors of the city such as Ordsall and Salford will continue to play a large role for supplying the rocketing demand for office space and quality housing.
David Lathwood, lead director in the north-west for JLL, said: “Each year we look at the UK’s big six regional centres, it’s clear that Manchester isn’t just already outperforming other cities but that the opportunities in front of it are rich and diverse.
“This year, it’s also clear that Brexit uncertainty hasn’t had the same impact on occupier sentiment than it has in other areas of the country. The fact that we’ve had another record-breaking year of office take-up means the priority for the market now is ensuring that development rates can keep up.”