Manchester has become the first UK regional office market to see yields compress this cycle. Prime yields moved from 6.75% to 6.50% during the second quarter, on the back of take-up that reached a five-year high and a development pipeline that has thinned to almost nothing.
The occupier story is broad-based: professional services, media and, increasingly, AI and data businesses taking their first northern offices. Grade A vacancy in the core sits below 6%, and the two schemes completing this year are more than half pre-let.
"There is effectively no new supply after 2027. Rents have one direction to travel and the investment market has noticed."
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