Regus Another 200,000 sq ft of shared office space planned in Manchester
Shared and short-term office providers are planning up to 200,000 sq ft of new office space in Manchester. WeWork is planning a third outlet expected to be in the Northern Quarter of the city, while Regus and Spaces are also looking for additional premises. A report by property company Colliers International showed that serviced office providers accounted for a fifth of Manchester's office space in the first three quarters of the year, with 100,000 sq ft of new space taken in the summer. Demand from the media and technology sectors is causing the increase, according to the report.

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Specialist providers are planning another 200,000 sq ft of shared and short-term office space as Manchester’s office market goes flexible.

City sources suggest that WeWork are looking for a third Manchester outlet – probably in the Northern Quarter – whilst rival providers Regus and Spaces head a list of half a dozen new requirements.

If all the flexible office providers now plotting expansion in the city complete deals it could mean another 200,000 sq ft of flexible workspace. This would double the 100,000 sq ft signed up during the summer quarter.

Speculation about a fast-expanding sector comes as Colliers International say flexible working is going to dominate the Manchester office market in the coming year.

The report showed serviced office providers addressed the need for flexible working from small and growing operators by taking up to one fifth of space in Manchester in the first three quarters of 2017.

Major developments included global co-working specialist WeWork following the opening of its first office outside London at No 1 Spinningfields by adding another 44,000 sq ft at One St Peter’s Square and property developer Allied London launching its own co-working brand All Work & Social to operate alongside WeWork at Spinningfields.

Much of the demand for flexible office space comes from the media and tech sectors, and follows a similar expansion of flexible workspace in London.

Peter Gallagher, director, national offices at the Manchester office of Colliers International, said: “Greater Manchester’s booming media and tech sector, making the region increasingly the Silicon Valley of the North, has a strengthening requirement for office space tailor-made to meet its needs so it’s no surprise to see it play a major role in the take-up of modern and flexible office space throughout 2017.”

Colliers’ Manchester office market snapshot for the third quarter of 2017 also reported ongoing buoyant demand for office space in general with 447,809 sq ft transacted in 79 deals, including nine deals of more than 10,000 sq ft.

However, some experts have raised concerns about the rapid growth of flexible office providers, warning that a recession or economic slowdown could hit them first, and hardest.

Listed provider IWG recently issued a profit warning, saying its profits would be significantly below market expectations, down by about a third to £160m. Doubts have been raised about the $20 billion valuation of WeWork, one of the market leaders.

The lesson from history is that serviced office space can suffer – but can also benefit – from recessions. Whilst the end of the dot-com bubble in 2000 hurt industry giant Regus whose U.S. division went into Chapter 11 bankruptcy protection, the 2008-2012 recession was generally good for serviced offices as businesses reduced long-term property commitments to focus on short-term deals instead.