Manchester’s office market is heading into 2026 on a high, with prime rents forecast to breach the £50 per sq ft mark for the first time as demand for quality workspace continues to outstrip supply.
Prime headline rents in Manchester rose to £45.50 per sq ft in 2025, up from £44.00 at the start of the year, according to recent market data. The Lambert Smith Hampton Regional Offices Report 2025 predicts the city will hit the £50 benchmark by the end of 2026, cementing its position as the UK’s strongest regional office market.
The figures cap a blockbuster year for the city. Take-up in the first half of 2025 totalled 581,542 sq ft across 102 transactions – the largest first half since 2019 and 14% above the same period in 2024. By the end of Q3, more than 770,000 sq ft had been leased, running 6% above the five-year average.
Major deals signal confidence
December brought a flurry of high-profile lettings that underline Manchester’s appeal to major occupiers.
Insurance firm Canopius signed a 10-year lease on 13,500 sq ft at 100 Barbirolli Square, trading up from flexible space at WeWork. Hannah Welch, group premises manager at Canopius, said: “Manchester continues to stand out as one of the UK’s leading growth cities, with an exceptional talent pool and a vibrant business community.”
Savills doubled its Manchester footprint by taking an additional 15,300 sq ft at the Belvedere on Booth Street. James Evans, executive director at Savills, commented: “Manchester remains a critical market for our business. We look forward to the future with excitement.”
Other notable deals include Protector Insurance expanding to 35,000 sq ft at 3 Hardman Street, and a combined 69,000 sq ft letting at Aviary to law firm Latham & Watkins and accountancy firm Forvis Mazar. Virgin Media O2 has also opened its new Manchester city centre headquarters at Island, bringing 1,100 jobs into the heart of the city.
Supply squeeze intensifies
The strong leasing activity is colliding with a severe shortage of prime space. City-centre Grade A vacancy sits just below 3%, with prime vacancy holding close to 2%. Overall availability fell 6% in Q2 alone to around 2.9 million sq ft.
Across the UK’s regional markets, prime supply now represents just 5% of total availability, down from 9% two years ago. Developer appetite remains muted due to high build costs, elevated finance rates and investor uncertainty – meaning the supply crunch is unlikely to ease quickly.
One bright spot is Landsec’s The Republic at Mayfield, which broke ground in Q3 2025 as the first new-build office start in the Big Five regional cities this year. The 243,000 sq ft scheme is expected to command rents in excess of £50 per sq ft when it completes in 2028.
What’s driving demand?
Technology, media and telecoms firms accounted for 42% of Manchester’s take-up in H1 2025, with professional services and the public sector also active. The trend reflects a continued occupier focus on best-in-class buildings with strong ESG credentials and quality amenities.
LEVEL Workspace’s Manchester Office Market Forecast 2026-2028 highlights several emerging hotspots including NOMA, Mayfield, Piccadilly and Embankment. Out-of-town markets such as Salford Quays and South Manchester continue to offer value alternatives for occupiers prioritising affordability and connectivity.
Hybrid working has reshaped how businesses use space, but rather than reducing overall demand, occupiers are reinvesting into collaboration zones, client areas and wellness amenities.
If you’re looking to get ahead of the curve, managed or serviced office space are the future. With increased difficulty in finding and securing high-quality space, an office broker might be a good idea, check the pros and cons.
Looking ahead
Prime rents across the UK’s Big Six regional markets are forecast to grow by over 10% in 2025, the highest rate on record. Manchester is expected to reach £50 per sq ft by late 2026 when the next phase of St Michael’s launches.
For businesses planning office moves, acting early will be crucial. With Grade A vacancy at historic lows and limited new supply in the pipeline, competition for the best space is only set to intensify.
Manchester’s office market is entering a period of evolution rather than disruption. The fundamentals remain strong, but securing quality space at the right price will require planning and local market expertise.
