Zoopla Property : EXCLUSIVE: Regional office leasing 5% above average in 2015

April 16, 2015

Office take-up across the top nine regional cities has been "less than reassuring" during the first three months of the year, at just five per cent above the average, according to Bilfinger GVA.

Total office leasing stood at 1,975,800 sq ft across Birmingham, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Liverpool, Manchester and Newcastle.

There was a slowdown in city centre office leasing, with activity between January and March five per cent below the five year average for the beginning of the year. Businesses agreed to occupy some 1,095,800 sq ft of offices in the nine city centres - 56 per cent of the total, according to the fresh figures.

However, office leasing out-of-town fared much better, and was 20 per cent above the average, at 880,000 sq ft.

Across the country, office leasing was 20 per cent above average in Manchester, Edinburgh and Glasgow, but below average elsewhere.

The largest city centre deal was 49,000 sq ft to PwC at No 1 Spinningfields in Manchester. Activity in the city was further boosted by major deals at Salford Quays, including BUPA's 120,000 sq ft pre-let deal at Harbour City.

Carl Potter, national head of offices at Bilfinger GVA, said: "While there has certainly been an ongoing buzz around the ongoing regional office markets' recovery, actual take-up rates have been less than reassuring.

"Having ended 2014 with all cities having very positive figures, record take-up rates and a new development cycle gaining momentum, it is clear that the ride back to a fully balanced market may well be a little bumpy.

"The news that HSBC is 'coming home' to open up a new HQ for its retail banking business at Arena Central scheme in central Birmingham is a vote of immense confidence in the region. So despite the slightly underwhelming figures there is still room for optimism and as deals such as HSBC and the other notable requirements fall into place and feed into the statistics we do expect a good and resilient 2015."

To rent:

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2. From £1,723,722 pa, you can rent this office in Bristol, situated within a prime waterfront location. The modern building is available via Lambert Smith Hampton - Bristol.

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