Manchester is outperforming other regional centres in the UK with new job creation and office take-up.
JLL released figures about Manchester’s thriving economy and property market at the annual north-west property market update. The professional services firm specializing in real estate revealed that Manchester has remained the top regional city with the most office take-up since JLL began recording the data over 15 years ago.
As the UK’s tech capital outside of London, Manchester’s tech sector is the leading driver of demand for office space. Last year, office space take-up totalled more than 1.75 million sq ft. With a 54% increase on the 10-year average, this is 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.”
Diverse opportunities in Manchester
With a diversified and fast growing economy, Manchester boasts a wide range of job opportunities and has seen the largest wage growth since 2008. Manchester is even forecast to gain an additional 10,000 office workers by 2021 than it did in 2018.
This growth in jobs, workers, and wages is positively impacting the office, industrial, and residential property markets. There are a variety of new and expanding business districts in this city in the Northern Powerhouse that will continue to play a big part in supplying the high demand for office space.
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.”
