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In this blog, David Porter – Head of the Manchester Commercial Office for Knight Frank and Vice Chair of British Council for Offices in the North – offers the lowdown on the region’s thriving office market.

2023: a mixed bag

According to Knight Frank’s UK Cities 2024, different factors, including economic difficulties, high costs, and conflict overseas, challenged office market activity in 2023. The result was a broad decline in office take-up, with investment volumes falling below average.

However, looking at the North on a city-by-city basis, there were some significant stand-outs last year:

  • Despite the second half of the year showing improvement, office take-up in Manchester fell short of the 1m sq. ft. mark, finishing at 942,000 sq ft. – which is 14% below the five-year annual average. Manchester saw 221 deals completed against an average of 213; above the five-year average.
  • Compare this to Leeds, which experienced strong occupier demand in 2023, with the city registering the highest level of annual take-up in four years. A total of 651,461 sq. ft. was acquired, 10% above the five-year annual average and a 9% year-on-year increase. The number of deals rose slightly from the previous year: 127 completed, which was 17% above the five-year annual average.
  • In Sheffield, occupier activity increased in 2023, with take-up of 374,120 sq ft. – a 21% increase on the previous year that was 6% above the 10-year annual average. Despite above average levels of take-up, just 40% was for grade A space, owing to the lack of suitable space available in the city.

So, while the overall outlook for the UK in 2023 wasn’t exceptional, there was definite cause for optimism, especially in the North – a huge growth area for commercial development.

It’s now time to turn our attention to this year, and look forward to a successful year for the office market.

What’s in store for 2024?

Businesses will continue to look through a ‘green lens’ when it comes to achieving environmental goals through their investment in commercial spaces.

ESG standards, including energy-efficient upgrades and green certifications, are vital for investors, occupiers and lenders. But according to Knight Frank’s latest research, approximately 79% of office spaces in the UK fall short of an EPC B rating, requiring upgrade work to avoid depreciation or obsolescence.

Wondering where to stay? Take advantage of our special room rates

If you haven’t yet booked your accommodation, we have reserved a limited number of rooms at preferential rates. Take a look at the varied options and secure your room directly with the hotel of your choice by quoting the promotional code or using the booking link listed on our website. The availability of rooms with preferential rates will be limited from March onwards. We therefore recommend that you make your reservations at the earliest opportunity. 

This week, we are celebrating the women in our industry as part of International Women’s Day and Women in Construction week; giving us the perfect opportunity to shine the spotlight on the outstanding women joining us in Birmingham this May.

 

Maggie Grogan: Maggie joined Muse in 2020 and having launched the Midlands office in 2022, Maggie secured Muse as regeneration partner for the £3.2bn Arden Cross project – one of the Midlands most important regeneration opportunities. In less than three years Maggie has risen through the ranks, blazing a trail for women in property and becoming the first female regional Managing Director at Muse, delivering the company vision to create new places across the Midlands.

Alexandra King: Alex King is lecturer on the BA Interior Architecture and Design course at Birmingham City University. She has a MA in Architecture from the University of Edinburgh, a Part II Graduate Diploma in Architecture from the University of Westminster, and is a Fellow of the HEA. Alex has worked within architectural practice and interior design across various locations including London, New York and Birmingham. The majority of her time in practice was spent working on heritage and educational projects for international practice Hawkins\Brown, and within the hospitality sector for StudioIlse. 

Selina Mason: Selina Mason is an Architect and masterplanner who is responsible for delivering high quality design and masterplanning across Lendlease’s UK and Europe urban regeneration portfolio. Currently she is also Development Director on Smithfield Birmingham. Selina also has an Honorary Fellowship from RIBA and she is a Design Council Ambassador and was recently appointed by the Government to the Urban Centre Recovery Task Force.

Leah Jones: Leah has had an extensive career delivering transformational change in challenging environments. Change portfolios Leah has led have included digital, legislative and workplace transformation. Leah has been with the Government Property Agency since 2019, joining as the Programme Manager for the cross-government Smarter Working Programme and is now responsible for the Workplace Experience team, a collaborative, empowered and customer-focused team who are making a tangible difference to Civil Service ways of working.

Hannah Critchlow: Dr Hannah Critchlow is an internationally-acclaimed neuroscientist, broadcaster, author and Fellow at Magdalene College, University of Cambridge. Best known for demystifying the human brain, she has appeared on BBC, ABC and Korean TV and Radio, notably in the Great Minds Series, Tomorrow’s World Live and BBC Radio 4’s Destiny and the Brain. In 2022 Hannah received an Honorary Doctorate from Brunel University for her work in neuroscience and communication, and in 2019 was named by Nature as one of their ‘Rising Stars in Life Sciences’. 

Learn more and read their full biographies here.

#BCOconference   #Birmingham2024

CREATING VIBRANCY

We are delighted to announce the full programme for the BCO Annual Conference 2024 in Birmingham. This year will see a brilliant series of events taking place pre-conference, along with a host of learning and networking opportunities throughout. As ever, it will be a test of stamina for those taking part! 

Scroll down for more information and to download the conference brochure.

This year’s BCO Golf Cup will take place at the Forest of Arden, with golfers playing the Arden course, designed by Donald Steele in 1992. The now renowned BCO Cycle Challenge will see cyclists pedal 270 spectacular miles across 3 days, and will raise funds for The Brain Tumour Charity, our partner charity for the conference.

Hear from leading voices during the plenary sessions that will bring to light multiple perspectives and discuss the challenges and opportunities ahead. Seminars will reflect the extraordinary times in which we live and work, and will provide a forum for an intimate exploration of a variety of topics including AI and culture. 

The tours will provide an alternative option to the conference seminars and they will uncover the city’s rich architectural heritage, and explore the headquarters of some of the most innovative companies.

BCO NextGen will again offer a supplementary programme for young professionals within the sector, providing activities that sit alongside the main itinerary, to add value to the conference experience and encourage greater participation from this important community within the BCO.

Want to know more? Download this year’s conference brochure. Here you will find detailed information on all aspects of the 2024 conference programme, including the party at the Luna Springs in Digbeth, one of the most iconic neighbourhoods in Birmingham, as well as the photography competition, back for the 5th year running.

“I encourage you all to join us as this is an important moment for the office, where the future of the
workplace continues to be a topic of debate”. Read more from Peter Crowther, BCO Senior Vice President and Conference Chair.

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