Painter Print

Drivers Jonas, a property consultancy, has recently studies real estate trends of six cities including Manchester to see the effects of recession. According to it, while all cities were hurt by recession, Manchester still faired better among them. According to the report, rent levels in Manchester did not drop much in 2009. The primal rental rate dropped by 50p though primal yield is expected to drop by 0.25% in 2010. Further, the period of rent free lease was extended to 30 months in case of a normal ten years lease and it is expected to remain the same this year as well.

However, the businesses preferred city centre business locations as compared to business parks. Further, the offices rented were small, mostly under five thousand sq. ft. The total office spaced leased in 2009 in Manchester was merely 809,000 sq ft. The annual value of the leases also fell by 45% from 2008 and 80% as compared to 2007.

However, out of the six cities studies in the report, Manchester is one of the two cities which still have construction projects going on. Therefore, the businesses in Manchester will be able to rent new offices even in 2010. Around 250,000 sq ft of desk space to rent will be available in Manchester in 2010 which is good though it is lowest in the last five years.

The precursors to the stability are media companies. The report states the example of television channel ITV which is looking for a large site to not only accommodate 45,000 sq. ft. of office space but also to build up a set for Coronation Street which will be spread out in six acres.