Manchester’s commercial property market is experiencing its strongest period of activity since before the pandemic, with office take-up in the city centre reaching 1.2 million square feet in the first quarter of 2026 — a 34% increase on the same period last year and the highest quarterly figure since records began, according to data published by property consultancy CBRE. The surge is being driven by a combination of technology companies establishing northern operations, financial services firms seeking lower-cost alternatives to London, and professional services businesses expanding to serve a growing regional client base.
The most significant transaction of the quarter was the pre-letting by a major US technology company of 280,000 square feet at the NOMA development adjacent to Manchester Victoria station, in what represents the largest single office deal in the city’s history. The company, which declined to be named ahead of a planned announcement, is understood to be establishing a European engineering hub that will ultimately employ over 3,000 people — a major coup for the city and for the government’s levelling up agenda.
Financial services expansion has also been a notable feature of the market. Several London-based asset managers and investment banks have signed leases for expanded Manchester offices as they seek to distribute operations across multiple UK locations and access a deep pool of graduate talent from the city’s universities — which between them produce approximately 65,000 graduates per year. JP Morgan, Goldman Sachs, KPMG and PwC have all grown their Manchester headcounts significantly in recent years, and the trend shows no sign of abating.
The development pipeline is struggling to keep pace with demand. Grade A vacancy rates in Manchester city centre have fallen to just 3.2%, their lowest level in over a decade, putting upward pressure on rents. Prime headline rents have risen to £42.50 per square foot — still well below London levels but representing a 15% increase over the past two years. Several major development schemes are under construction or in planning, including the 1 Greengate tower and extensions to the Spinningfields estate, but completions are not expected to significantly relieve the supply shortage until 2028 at the earliest.
Retail and residential property in Manchester have also benefited from the economic momentum generated by the booming office market. Footfall in the city centre is running 8% above 2019 pre-pandemic levels, and residential property prices in the most sought-after neighbourhoods — Ancoats, the Northern Quarter and Castlefield — have risen by between 12% and 18% over the past two years.
— Sarah Mitchell, London Capital Post
