UK Office Market Takes First Steps to Recovery in 2010
The National Office Report 2010 from commercial property consultants Lambert Smith Hampton has reported that the ΓÇ£UK office market took its first steps towards recovery after take-up reached 5.5m sq ft in Q1 2010, already a third of the total amount transacted in the whole of 2009.ΓÇ¥
In the report which covers 37 separate locations throughout the UK and claims to include data on two thirds of the UKΓÇÖs conventional office space market, it is revealed that the Central London office market has strengthened significantly since the start of 2010 while prime rents have finally begun to reflect the improved market conditions in the capital. The firm also says that it expects to see further increases in rental values as the market continues to improve in the next 12 months before filtering out to the provincial office markets.
Also raised within the report is the need for the corporate sector to fill the gap left in the office space market by the coalition GovernmentΓÇÖs austerity measures.
Looking outside of Central London, which it is claimed has dominated the take-up of office space, the regional office markets have experienced far more mixed fortunes, with significant falls in activity reportedly focused on the South and east of the UK. In contrast the firmΓÇÖs research has shown the North and Midlands to have seen occupancy activity perform better and raise above the UK average for the same period.