The overall vacancy rate in Manchester will begin to decline from 2009, contributing to gentle upward rental growth on the best space.

• When analysing deals over 1,000 sq ft, half year take-up figures for 2008 were 432,328 sq ft, which is 29% up on the same time last year.
• Around 50% of the 185,000 sq ft requirements circling the market are public sector driven.
• Due to impressive take-up figures in the second quarter and limited development completions coming on stream in Q2, total supply has fallen by 3% and now stands at 2 m sq ft.
• The vacancy rate stands at 11.4% (up from 8.9% at the same time last year).
• Our current forecast for rents is for an average annual growth rate of 2.4% per annum over the period 2008-2012.
• The larger end of the market is holding up well.The most noteworthy being the acquisition of50,000 sq ft by Bank of New York Mellon at Spinningfields.
• Yields in the second quarter of 2008 have continued to move out for both prime and secondary city centre offices.

Read the full Savills articles below:

Manchester Office Property Supply and Development Survey - Autumn 2008 PDF