Office take-up in regional cities has increased 66%, fuelled by a series of large deals in Cardiff, Leeds and Nottingham.
Deals for 1.2m sq ft were agreed in Q2 in regional cities including Bristol and Newcastle, compared to 740,455 sq ft in Q1, according to the latest DTZ Property Times UK regional offices report.
Significant contracts in Q2 included Admiral Insurance getting planning permission for a 190,000 sq ft prelet in Cardiff, and a 59,000 sq ft letting to legal firm Browne Jacobson in Notts.
In addition, between April and June, Leeds experienced its highest take-up in four years.
Availability in the regional cities remained unchanged at 13.5m sq ft, but grade A take-up increased, with availability falling to below 4m sq ft for the first time since Q4 2008.
Martin Davis, head of UK research at DTZ, said: “Total annual take-up volume is forecast to be slightly lower than in 2010. This is due in part to the current phase of the lease event cycle for some markets, and an absence in 2011 of the exceptional number of large requirements satisfied in recent years.”
DTZ added that Coca-Cola and Deloitte were two of a number of firms looking to make an inward move to Nottingham city centre.
joanna.bourke@estatesgazette.com
