Property management company GVA’s research shows only minor improvements in the office space market.
As figures for 2011 only slightly improve, it potentially points to a bleak future for the 2012 office space market, reports by GVA have shown.
According to a recent report by property management company GVA, the occupier market for regional office space in the UK has improved each quarter this year following a less than ideal start.
The property management company’s ‘Big Nine’ list includes Birmingham, Bristol, Cardiff, Glasgow, Manchester, Leeds, Edinburgh, Newcastle and Liverpool; all of whom recorded the highest quarterly take-ups this year. City and out-of-town office space totalled 1,940,000 square foot in quarter three, a figure that is 22 per cent above the quarterly average.
Carl Potter, direct and National head of offices at GVA, who commented on the situation said: “Birmingham and Cardiff city centres and Glasgow, Manchester and Newcastle out-of-town markets have performed particularly well over the past quarter. The deals in the pipeline for the rest of the year will guarantee a solid year’s activity, although renewed economic uncertainty and patchy long term enquiries indicate a tough year ahead.”
A quarterly review of the market by the UK’s largest independent commercial property advisor indicates slow but continued growth in 2011 overall, however current statistics point to an even more gloomy 2012.
Mr Potter continued: “Take-up in the nine city centres has been spread more evenly than usual this quarter, with no exceptional levels of take-up in any one city.”
Whilst rent has generally remained static this year, the shortfall in new prime office space has seen some deals becoming more competitive. Similarly the large amount of empty property has caused the value of an average office space to weaken.