Take up of office space in Oxford slowed to below the 5 year average (252,000 sq ft) – a final figure of 200,000 sq ft was achieved in 2008 experts say. Oxford has been somewhat shielded from the effect of the crunch because the city centre is so compact and supply is always so limited, due to the historic nature of the buildings. This is probably what will prevent rental rates falling in the coming months.
Rents may have even been edging up in the town centre to 22 pounds per square foot, while out of town headline rents hit 23.50 per sq ft. Indeed out of town office space accounted for 75% of all take up last year. However a private equity firm is looking to renovate office space on Pembroke Street and St Aldates, meaning that occupiers could be lured into the centre with the prospect of brand new offices.