A quarterly review of the nine major UK cities shows total take up during Q1 of 2015 reached 1,975,800 sq.ft. This figure represents a level of 5% above the five year quarterly average.
The research conducted by Bilfinger GVA reviewed activity in Birmingham, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Liverpool, Manchester and Newcastle.
The regional office market review figures showed a top performance by Manchester, boosted by BUPA’s 120,000 sq.ft deal in Salford Quays and PWC at No1 Spinningfields in the city centre, amounting to 49,400 sq.ft. Cities such as Glasgow and Edinburgh also showed figures above the five year quarterly average, and the news of HSBC opening a new HQ for its retail banking business in Birmingham, occupying 210,000 sq.ft in total brings a sense of confidence to the office market in the UK.
As a consequence of the improvement in demand, headline net effective rents have on average increased by 11% across the big nine cities over Q1, the strongest growth being in Bristol, Edinburgh and Leeds, whilst headline rents have increased by 4% and incentives are falling.
Occupiers are focusing on grade A space in new developments or quality refurbishments which offer the best and most efficient working environment.
In Hull we are currently developing new Grade A office space at The Beacon and further west at Green Park in Newport.
Click here to find out further details on these projects or click here to view Bilfinger’s full market research report.
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