A huge hike in Salford’s business market saw three of the five biggest office deals of the year take place in Ordsall and Salford Quays.
A new report by property research firm Colliers international found that Salford Quays, and its near neighbour Ordsall, is now the epicentre of the region for multinational firms taking new office space.
BUPA topped the rankings with its enormous 142,000sq ft let at Harbour City – nearly 50% larger than the second-placed let.
TalkTalk’s 15-year deal, 106,187sq ft deal to move from Cadishead to the former Colgate-Palmolive factory – now Soapworks – in Ordsall put it second.
Global asset managers The Carlyle Group say the TalkTalk deal was the second largest deal agreed in Salford since the BBC announced its relocation to MediaCityUK in 2007.
And coming in fifth for the biggest deals of the year was the Home Office’s UK Border Agency who plan in June 2016 to relocate from a number of offices across Greater Manchester to 54,816sq ft of new space at Soapworks’ Building C.
It means Salford hit record levels of rising office rentals in 2015.
Over the course of the year the average price per sq ft of Grade A space rose 5% to £22.
The report notes: “Salford witnessed exceptional take-up in 2015, driven by the biggest commercial property letting in Manchester in the last five years – BUPA’s 142,000 sq ft lease at Harbour City.
“Investor demand for assets in remains strong, with investors looking to capitalise on the yield spread with London and the improving rental growth prospects.”
Manchester city centre propped up the top five table with NCC Group’s 60,246sq ft let at XYZ Building and Addleshaw Goddard taking 56,253sq ft of space at One St Peter’s Square.