Manchester Office Market Forecast 2026–2028

Manchester’s Office Market Today

Manchester remains one of the most dynamic regional office markets in the UK. Recent reports from Savills, JLL, CBRE, Place North West, and the Manchester Office Agents Forum (MOAF) reveal a city adapting to hybrid working, ESG demands, and wider economic conditions.

Savills highlighted that by the end of Q2 2025, available office space in the city centre stood at around 2.9 million square feet, a 6% reduction from the previous quarter. Demand remains resilient. JLL recorded approximately 581,500 square feet of city centre take-up in H1 2025, with strong appetite for Grade A and refurbished stock.

Out-of-town markets are also thriving. MOAF data shows consistent take-up in South Manchester, Salford Quays, and Trafford, where occupiers value affordability, parking, and connectivity.

The current picture is one of steady demand, increasing competition for best-in-class space, and a clear tilt toward ESG compliance.

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Key Drivers of Change for 2026–2028

Several forces will shape Manchester’s office market over the next three years.

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Shifting Demand Toward Refurbished and Grade A Stock

A recent wave of new completions has lifted vacancy rates in the short term. Yet JLL and Savills both point to a growing preference for refurbished Grade A space. These buildings offer high quality with lower costs than new builds, appealing to occupiers who want ESG compliance and strong amenities without premium pricing.

As more older stock becomes obsolete, refurbishments will remain critical in meeting demand while aligning with sustainability goals.

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Continued Strong Take-Up from Tech, Media and Digital Firms

Manchester’s tech, media, and digital sectors continue to drive growth. MOAF reported steady demand from these industries in H1 2025. These occupiers want collaborative, flexible environments with top-tier amenities. Their requirements align well with serviced and managed offices as well as high-quality refurbished Grade A buildings.

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Economic Constraints and Rent Pressure

CBRE’s UK Market Outlook 2025 flagged macroeconomic headwinds such as construction costs and borrowing rates. While inflation is stabilising, these factors still influence landlord and tenant behaviour. The cost of debt for prime assets is expected to ease slightly, offering some relief for developers and investors.

For occupiers, Savills forecasts continued upward pressure on rents for the best space, particularly as Grade A availability tightens. This means companies must weigh long-term cost efficiency against the benefits of securing premium stock.

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Predictions for Office Demand and Supply

Between 2026 and 2028, Manchester’s office market is expected to hold steady or modestly grow in annual take-up, supported by diverse sector demand. Technology, finance, life sciences, and creative firms will remain at the forefront.

Hybrid working is reshaping demand profiles. Fewer desks per employee are needed, but occupiers are reinvesting saved space into collaboration zones, client areas, and wellness amenities. Rather than shrinking total demand, this shift reallocates how space is used.

Refurbished Grade A stock will play an outsized role in meeting this evolving demand. Meanwhile, out-of-town markets such as Salford Quays and Trafford are expected to stay competitive, offering value for money and accessibility.

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The Role of Technology and AI in Manchester Offices

Technology is redefining expectations in office buildings. Smart systems now monitor occupancy, air quality, and energy use. By 2028, AI is expected to underpin these systems, providing predictive insights into space utilisation and energy efficiency.

For occupiers, PropTech platforms are simplifying the leasing process and enabling real-time facilities management. These advancements create transparency and efficiency, which both landlords and tenants increasingly expect.

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Emerging Hotspots in Manchester

While the city centre remains the core of the market, several areas are emerging as hotspots that will shape growth in the coming years.

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· NOMA is becoming a hub for creative and technology occupiers, supported by new developments and strong transport connections.

· St John’s is evolving as a mixed-use destination with strong appeal for media and cultural businesses.

· Northern Quarter continues to thrive as a home for start-ups and creative firms, supported by flexible workspaces and community-driven environments.

· Piccadilly is gaining momentum thanks to regeneration projects and its role as a key gateway for rail and transport. The launch of London Road Firestation is set to enhance the areas reputation along with the investment into upgrading Piccadilly gardens

· Mayfield is emerging as a transformative regeneration zone, with large-scale office, residential, and leisure developments drawing forward-looking occupiers.

· Embankment has grown in prominence, marked by Deloitte and Aecom’s recent relocations, which signals its status as a rising business hub.

· Out-of-town hubs such as Salford Quays and South Manchester remain strong, offering affordable alternatives with excellent connectivity.

These locations are set to play a larger role in Manchester’s market as demand diversifies and occupiers seek the right balance of cost, quality, and accessibility.

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Risks and Challenges for the Market

The outlook is positive but not without challenges.

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· Oversupply risk: If speculative developments deliver more space than demand can absorb, vacancy rates in lower-grade stock may rise.

· Economic uncertainty: Global and domestic conditions could affect leasing confidence, slowing decision-making.

· Hybrid working: Reduced space per employee may cap total demand growth.

· Regional competition: Cities such as Birmingham and Leeds are investing heavily in Grade A supply, creating strong alternatives.

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Opportunities for Businesses Planning Ahead

Companies willing to plan early can secure competitive advantages.

Occupying ESG-certified or recently refurbished buildings ensures compliance with sustainability expectations while also locking in quality before availability tightens further.

Flexible workspace options reduce exposure to risk while providing access to premium amenities. Hybrid models allow occupiers to reallocate budgets toward features that enhance culture and attract talent.

Infrastructure improvements will also shape future opportunity. Locating near upgraded transport nodes ensures long-term connectivity and supports recruitment.

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Key Takeaways from the 2026–2028 Forecast

· Demand will concentrate on best-in-class, ESG-aligned stock.

· Refurbished Grade A buildings will remain critical to supply.

· Hybrid working will continue to influence layouts and utilisation.

· Out-of-town markets will remain relevant, particularly where affordability and accessibility are priorities.

· Emerging hotspots, including Piccadilly, Mayfield, and Embankment, will play a growing role in the city’s office landscape.

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Manchester’s office market is entering a period of evolution rather than disruption. From 2026 to 2028, demand will be guided by hybrid working, ESG priorities, and technology. Companies that act early to secure sustainable, flexible, and well-located space will be best positioned to attract talent, manage costs, and adapt to change.

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