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March 31, 2026
Alex Timperley
5 mins
Fresh off the back of a record-breaking 2025 and a busy February, Manchester’s office market is breaking more ground as we come to the end of Q1 2026. Rumours of record office rents and confirmations of major new investments set a good tone for the rest of the year ahead.
This month we’ve looked at:
The Treasury and Government Property Agency have announced planning approval for “a cutting-edge Civil Service campus in Manchester to drive forward world-class digital capability and services for the public” on the vacant Great Ancoats Street site.
It is estimated that the Manchester Digital Campus will bring together 8,800 people from various government departments across Manchester into one building. The 900,000 sqft of purpose-built workspace will focus on digital work, harnessing the North West’s digital expertise. It will also support approximately 4,900 direct jobs over a four-year build period, and an estimated £2.3bn of social value investment.
This is a big deal for Manchester. It is another major vote of confidence in the city and another government commitment which will bring further prosperity to our fast-growing city centre.
Cllr Bev Craig OBE, Leader of Manchester City Council, said:
“This is a significant announcement for our city. The Manchester Digital Campus will be a landmark programme that cements Manchester’s growing global reputation in Digital and Cyber industries, creating major opportunities for residents and a huge boost to our city.”
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Reports in Place North West suggest that Dechra, a vet pharma business which develops medicine for animals, is consolidating its UK operations in Manchester. The company was previously headquartered in Northwich with an additional site in Shrewsbury. They decided to move their HQ to Boston, USA and combine its UK sites at Bruntwood’s No3 Circle Square.
The business is also likely to set a new headline rent for Manchester at the same time. The report says Dechra will pay £48 per sqft, £3 higher than the previous record price paid by Channel 4 at No. 1 St. Michael’s.
Speaking of St. Michael’s, an additional 75,000 sqft of space has been announced at the city centre development. The first phase of the building is fully let, and rents in the second phase are expected to reach £55 per sqft when it is completed and online in September 2027.
Gary Neville, director at Relentless Developments, said:
“The success of No.1 St Michael’s shows the strength of demand for truly exceptional workspace in Manchester city centre. Businesses want officesthat reflect their ambitions, attract talent, and place them at the centre of a vibrant destination.
“No.2 St Michael’s will build on that momentum. It will deliver workspace that sets new benchmarks for quality, sustainability and design and reflects the city’s growing global status as a place to do business. Set within a landmark tower, it will create a location that combines work, hospitality and living in a way that hasn’t been seen in Manchester before.”
The redevelopment of 35 Fountain Street has been announced, and developer Bywater is aiming to create Manchester’s most sustainable office building.
The scheme will comprise 87,000 sqft across the basement, ground and eight upper floors. That includes a two-storey, 16,000 sqft rooftop extension made from cross-laminated timber to add to the building’s sustainability credentials.
A contractor has been appointed and Bywater is targeting completion in 2027. Chris Riley, development manager at Bywater, said:
“We are excited to see our vision for 35 Fountain Street progress through 2026 and 2027. Working closely with the local council, GMI and our consultant team, we are delivering a Grade A building that sets a new benchmark for sustainabilityd, esign quality and environmental performance in Manchester.”
A new masterplan has been announced for Manchester city centre. Relentless Developments and Investec have announced the redevelopment of the Kendal Milne building and the surrounding area. It will include 230,000 sqft of office space in the building itself, ground-level food, drink and retail spaces, and a new office building of approximately 280,000 sqft on the site of the existing multi‑storey car park.
The project is supported by a £44m grant from the Greater Manchester Combined Authority and Manchester City Council’s Good Growth fund. The new masterplan will expand the district’s employment capacity and reinforce Deansgate as a commercial centre.
Anthony Kilbride, chief executive at Relentless, said:
“The retrofit of the former Kendal Milne building will set the tone for what follows: thoughtfully designed, highly sustainable space that prioritises wellbeing and flexibility, meeting the evolving needs of modern occupiers while respecting the heritage of the site.”
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