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November 28, 2025
Alex Timperley
5 mins
We’re approaching the end of 2025 and most businesses are working hard to finish the year with a bang. This year, that ambition is reflected by the whole of Greater Manchester itself where the Combined Authority and Mayor Andy Burnham have kicked off their ambitious plans for a decade of ‘Good Growth’.
That headline has dominated the news for Manchester’s officesector this month, and it promises to be big news for a long time yet – but it’s not the only thing happening in Manchester! Find out about that and…
In March 2025, we reported that Andy Burnham was concerned Manchester was on course to run out of office space for new and growing businesses. This would obviously have a negative effect on the city’s economic growth, and it is clearly something which has remained at the forefront of the mayor’s mind.
Now we are beginning to see part of the solution. Burnham and the Greater Manchester Combined Authority have announced a £1bn ‘Good Growth’ fund for the region that is in part design to address the future shortage of office space.
The money will be used to fill in funding gaps and get projects off the ground that may otherwise have been stalled by a lack of available cash. That includes a range of office projects in the first wave of developments:
These projects will complete and then feed money back into the ‘Good Growth’ fund to finance more developments in the future.
Andy Burnham said:
"This is a new and innovative public investment fund, initially worth £1 billion, that will do exactly what it says on the tin: create growth that is more widely and fairly spread and which recycles wealth and benefits back to our residents and communities.
“By taking a patient approach, it will unlock projects in all 10 boroughs of Greater Manchester and bring about a level of simultaneous development we have not witnessed here since Victorian times.”
Analysis from OBI shows that Manchester’s available office space for rent was scheduled to be absorbed by the end of next year due to the pace of the city’s growth. Just in time then is this fund which will get new developments live in the city starting in 2027. In total, the first wave of investments includes more than 900,000 sqft of employment space in Manchester city centre.
However, this won’t saturate the demand. It will provide what Manchester needs to keep growing while leaving room for further developments in our city that can also thrive.
Will Lewis, founder and CEO of OBI, said:
“With the new wave of supply, the outlook appears healthy for the region – it will ensure the city’s economic health is safeguarded without oversaturating the level of prime space in the city.”
Manchester has been recognised as the UK’s leading business powerhouse outside London by Natwest thanks to its infrastructure developments, universities and dynamic economy.
The latest EY Regional Economic Forecast shows almost £3bn of economic growth is expected in Manchester by the end of 2028. That growth goes hand in hand with the growth of the city’s offices sector according to Savills.
Manchester is the only ‘Big Six’ city with new office developments coming through in the next three years, and the average rent is set to go from £45 per sqft to £52 per sqft by the end of next year. That’s 16% growth in 12 months – a clear demonstration of how business is booming in Manchester.
Gary Neville’s development company, Relentless, is working with Investec on the Kendal project according to Place North West. The 500,000 sqft renovation is one of the highest profile projects in the city and will include approximately 230,000 sqft of office space.
The project has received £44m from the ‘Good Growth’ fund and looks set to be one of the most exciting developments in Manchester once work begins.
Anthony Kilbride, chief executive of Relentless Developments, said:
“The support from GMCA breathes new life into this critical area of Manchester and will unlock the wider regeneration of the Parsonage district. We look forward to drawing on our reputation for creating modern, future-facing workspace that fulfils the city’s commercial ambition while also preserving the architecture and heritage of its historically significant buildings.”
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In other news, Sizewell C has opened an office on Manchester’s New York Street that will support the nuclear reactor under development on the Suffolk Coast. The North West is home to a third of the UK’s entire nuclear workforce, and Manchester is at the centre of that thanks to the city’s deep pool of talent and world class universities.
Over 70% of Sizewell C’s construction value is to be delivered to UK suppliers. Now, with this office opening, Manchester is going to be a significant beneficiary of the spending.
Nigel Cann, Joint Managing Director of Sizewell C, said:
“Sizewell C is a project that will benefit the whole of the UK, not just by generating energy, but by delivering thousands of jobs, growth and economic benefits right across the country.
“By opening a new office here in Manchester, we can be part of the strong concentration of nuclear skills and experience here in the North and harness talent that might not otherwise have joined our project. And it’s another step in ensuring that Britain has the nuclear workforce it needs for the future.”
One of the most significant office space developments in Manchester is Sister, a joint venture between Bruntwood SciTech and the University of Manchester. The scheme is worth a total of £1.7bn and includes two schemes at Plot C which together make up over 500,000 sqft of commercial space.
The 12-storey and 20-storey buildings went in for planning at the beginning of the month and have now received permission. It will be a landmark building for Manchester and provide the sort of high-tech office space that will boost the city’s strength in key areas including life sciences and technology.
Another building in for planning this month is the proposed replacement for the Stocktons Furniture building on Great Ancoats Street. This location has been the subject of speculation for a long time, but the new plans for 50- and 26-storey buildings will end that.
The plans include over 700 residential units, a large public realm allowance and 45,000 sqft of new commercial space in one of Manchester’s busiest and most in-demand locations. Businesses looking for a new space close to the Northern Quarter and Ancoats will surely be interested in how this building develops.
The next stage is a site visit from city councillors to scrutinise the plans and the site before the planning application is moved onto the next stage.
Manchester Business Park has been sold to Manchester Holdings for £19.5m following a short sales process. The 195,000 sqft office asset is located close to the Airport and is already home to companies including PZ Cussons, Emirates, Costain, and Regus.
There is just over 11,000 sqft of office space still available, but given the location it is likely to be taken up before too long.
Tom Hill of Manchester Holdings, said:
“Manchester BusinessPark is a strategic investment opportunity for us. Thanks to its high calibreof occupiers, the incredible location, and high specification office buildings,the space has great potential, and we’re looking forward to working with thetenants to maximise this.”
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