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Manchester’s Office Market: A Focus on Fitted Space

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Manchester’s office market is undergoing a notable transformation as businesses increasingly pursue high-quality, fitted office spaces.

This shift is fueled by a combination of factors, such as the demand for premium amenities, the necessity for flexible arrangements, and the city’s ongoing economic expansion. As a result, the heightened interest in fitted spaces is influencing rental prices, driving them upward for prime office locations.

The Surge of Fitted Spaces in Manchester

Fitted office spaces have emerged as a significant trend within Manchester’s commercial real estate sector, with a marked increase in demand over recent years. In 2023, fitted spaces represented 18.62% of all office space leased in the city, a substantial rise from 10.82% in 2022. This growth is also evident in the number of completed transactions for fitted and furnished offices, which saw an 18% increase compared to the previous year. Additionally, the average size of these transactions grew by 14%.
Several key factors are driving the popularity of fitted spaces:
Cost Efficiency: Fitted spaces provide a ready-to-occupy solution that reduces the need for substantial initial investments typically associated with traditional office fit-outs. This makes them appealing to businesses aiming to minimize upfront costs and expedite their relocation process.

Speed of Occupancy: With pre-configured and furnished spaces available, businesses can move in quickly and start operations without delay. This efficiency is particularly attractive to rapidly growing companies and those in fast-paced industries.
Lower Risk: Choosing fitted spaces mitigates the risks tied to conventional fit-out projects. Companies can depend on landlords or developers to deliver functional and visually appealing environments, thereby minimizing potential setbacks or unexpected expenses.

Lease Flexibility: Many fitted office options come with adaptable lease terms, catering to businesses that prefer not to commit to long-term agreements. This flexibility allows companies to respond to changing market conditions and adjust their space needs accordingly.

Effects on Rental Prices

The rising demand for fitted office spaces is contributing to an upward trend in rental rates across Manchester. Landlords are able to charge premiums of 20-25% for these spaces due to the additional investment involved in their fit-out and the advantages they offer tenants. While this represents a higher initial cost, many businesses find that the long-term benefits—such as reduced capital expenditures and quicker occupancy—justify the premium.

Noteworthy Examples of Fitted Space Success

Several successful transactions highlight the effectiveness of fitted spaces in Manchester:

  • Cornerblock: Developer APAM completed 5,000 sq ft of fully fitted space on the sixth floor, which was leased to One File within three months at £32.50 per sq ft. Another 5,000 sq ft on the fourth floor was similarly leased to Strativ Recruitment at the same rate.
  • 35 Dale Street and Fourways: XLB achieved success with speculative fitted suites at 35 Dale Street, including a 7,700 sq ft space leased by SLR. They also delivered a 5,700 sq ft turnkey solution at Fourways, which is now fully occupied with rents in the late £30s per sq ft.
  • Windmill Green: A 4,726 sq ft fitted space at Windmill Green was quickly leased to Hempsons at £38.00 per sq ft, leading to another similar space being developed for LSH.

*For illustration purposes only

Factors to Consider When Selecting Office Space

While fitted spaces offer numerous advantages, businesses should consider various factors when choosing an office location in Manchester:
Location and Quality: The area and quality of an office building significantly influence rental costs. Prime locations like Central Core and Spinningfields generally command higher rents for both Grade A and Grade B properties.

Space Requirements: Larger offices typically incur higher rents; thus, businesses should evaluate their actual space needs carefully to avoid unnecessary expenses.
Amenities and Access: Proximity to public transportation, local amenities, and parking availability can impact costs and should be part of the decision-making process.

Market Trends: The Manchester office market is dynamic and competitive; with demand for high-quality fitted spaces driving rental rates higher, businesses should be prepared to negotiate favourable terms, especially for long-term leases.

Discover Affordable Fitted Office Space at Turner Business Centre in Middleton

For those seeking fitted office spaces in the Manchester area, considering options outside the city center can bring significant benefits. Turner Business Centre in Middleton offers a compelling alternative, providing high-quality office spaces equipped with modern amenities at more competitive rates than central Manchester locations. Situated just a short drive from the city center, Turner Business Centre combines convenience with affordability, making it an ideal choice for businesses looking to maximise value without sacrificing quality. With flexible leasing options and fitted spaces designed to meet diverse business needs, Turner Business Centre presents an attractive solution for companies ready to establish themselves in a strategic, cost-effective location.

In conclusion…

The increasing prominence of fitted office spaces in Manchester reflects a broader shift within the city’s commercial real estate landscape. Driven by demands for cost-effectiveness, flexibility, and operational efficiency, businesses are increasingly opting for these ready-to-use solutions. Although rental premiums for fitted spaces are a consideration, many find that the long-term advantages outweigh initial costs. As demand continues to rise, landlords and developers are responding with innovative offerings that will shape Manchester’s future office market.

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