Cost of Office Space Decreased in 2010
Research from property firm Driver Jonas Deloitte (DJD) has revealed that the rental value of office space in the majority of the UKΓÇÖs regional cities decreased in 2010, with only the office markets of Central London and Manchester bucking the trend.
Reported by Property Week, the research is said to provide fresh evidence of the gap which exists between the office market in London and the remainder of the UK.
While the office market in Central London continued to enjoy growing demand and an upward trend in office rents, key regional cities such as Birmingham, Leeds, Edinburgh and Glasgow continued to lag behind – as Head of Research at DJD Anthony Duggan explained to Property Week:
ΓÇ£2010 saw a strong year of growth for central London offices but there were some further falls in rents in the regions during the first half of the year.ΓÇ¥
ΓÇ£We are expecting an improving outlook across the UK during 2011, with rental growth in London set to continue and the stabilisation witnessed in the regions during the second half of the year showing further improvement as the lack of new development allows supply to fall.ΓÇ¥
Expectations of improved conditions in regional office markets have also been expressed by leading figures of the UKΓÇÖs serviced office market, with the growth recorded in the capital viewed as increasingly reassuring and the possible starting point for a regional recovery.