Office Enquiries Fail to Build Upon Early Growth According to Commercial Property Firm King Sturge
King SturgeΓÇÖs latest UK office enquiries data points toward the recent buoyancy in commercial office space demand not being sustained, with figures during Q2 10 showing a decline in both the level (-12% quarter-on-quarter) and the number (-14%) of enquiries recorded across the commercial office property network.
The commercial property experts express disappointment at this change in activity after what they say was a promising start to the year;
ΓÇ£In the past, movement in enquiries has usually been reflected in take-up a few months laterΓÇ¥ according to Andrew Burrell, Head of Office Research at King Sturge.
ΓÇ£But since mid-2009, office take-up has recovered strongly ahead of any sign of an upturn in enquiries. The concern is that much of the recent rise in demand could be transient and may fade in the harsher post-election climate.ΓÇ¥
Some office space markets however faired better, with London continuing to show growth in the firmΓÇÖs data, with office space enquiries for Central LondonΓÇÖs City and West End exceeding those recorded a year ago. Other areas of the country to show signs of recovery include Newcastle, Glasgow, Nottingham and more recently Bristol.
Overall however the firm remains concerned that until national activity is underpinned by a sustained improvement in requests for new office space, there is a danger that it could fizzle out.