Headline office rents in Manchester will rise this year, a report forecasts.
According to Savills’ Spring study of the Manchester market, the increase will push headline office rents to £30 per month during 2011. That compares with a top rate of £28.50 for grade-A offices in 2010.
The trend will be driven by undersupply and a recovery in demand in central Manchester as the economy continues to emerge from the economic downturn, the property company predicts.
Patrick Joynson, director at Savills, said: “The imbalance between demand for institutional office stock in Manchester city centre and supply will start to place real upward pressure on rents especially as demand starts to pick up.
“The real issue for Manchester now is finding solution to the inevitable mid-term shortage of grade A space in the market.
This year some 850,000 sq ft of office space has been let in the city. Of this, 709,637 sq ft is grade-A office space.