Rising unemployment rates and a large number of companies attempting to reduce their rental expenditure by reducing leased office space will hit the Manchester property market quite hard next year. With fewer buyers in the market owing to the recession, office rentals and property valuations will soon witness a sharp decline in Manchester, according to a report by the real estate consultancy Jones Lang LaSalle.
The report, which was released by the company’s National Office Agency team in Manchester, says that the drop in office space rentals has so far not been so severe in Manchester. The existing vacant properties on the market are more due to landlords putting off plans for redevelopment. However, the more serious trend of emptying office space, that has already started in Manchester, will continue to grow with the result that occupier controlled properties will find themselves back on the market without too many interested buyers. This has been predicted by Trevor Sloan, who heads the company’s team in Manchester.
Sloan estimates that the downturn in Manchester right now is just a trickle compared to the rest of the UK. However, the end of the year will likely see a number of Grade B as well as prime Grade A office properties being let go, which will lower rental sale for a long time. The impending trend in Manchester is unlikely to reverse itself soon, especially because the UK will probably be one of the last countries in Europe to get out of the recession.
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