UK Office Space Prices on the Rise
The cost of office space has increased in over a quarter of UK towns and Cities according to new research from leading property firm Jones Lang LaSalle (JLL), while price stabilisation has occurred in over half.
Analysing activity in the office markets of 105 UK towns and cities, the research shows that rental growth (In terms of achievable rent) had occurred in 26% of the locations monitored ΓÇô up from just 8% during 2010. During the same period, over 50% of the office markets analysed had seen office rents stabilise.
Highlighted as having seen the most marked change were Glasgow, Birmingham and Manchester, with the cost of office space in these and several other regional cities expected to rise yet further as the supply of Grade A office Space becomes squeezed through the lack of new office developments coming to market.
ΓÇ£There are still significant opportunities for occupiers to obtain cost savings in some parts of the UK.ΓÇ¥ explained JLL director Jeremy Richards.
ΓÇ£However, the lack of speculative office development, which we are seeing across an increasing number of cities, means that the pipeline will remain severely limited and as Grade A supply reduces further, the window of opportunity for tenants is expected to close.ΓÇ¥
Fellow director James Finnis added: ΓÇ£Looking at current achievable rental levels, a number of UK regional markets, including Staines, Slough, Uxbridge and Norwich still remain some way below their long term average. We anticipate, because of this, that these locations could represent opportunities for further potential growth stories over the short term.ΓÇ¥
Due to be published on Tuesday 19th July, the Serviced Office Review Series from officebroker.com will also show price recovery in the serviced office markets of key regional cities across the UK. If you would like to receive an advance copy of this exclusive research email firstname.lastname@example.org
Past editions of the Serviced Office Review Series can be viewed and download for free from the Stats & Facts section of the officebroker.com website.