Office occupancy costs in the UK remained largely flat in the first half of 2013, according to the latest figures from BNP Paribas Real Estate.
But there were increases in areas of London and the surrounding boroughs.
Grade A office rents, rates and service charges showed the biggest increase in Swindon, Wiltshire, with a 12% rise to £23 per sq ft, followed by Watford, Hertfordshire, which recorded a 9% increase to £37 per sq ft.
Hammersmith and the West End both recorded 5% increases in costs to £55.50 per sq ft and £160.50 per sq ft respectively.
Drops in overall occupancy costs were recorded in Redhill/Reigate in Surrey, with a decline of 4% to £38 per sq ft, Newcastle where costs fell by 1.7% to £26.50 per sq ft, and Southampton, Hampshire, where costs shrank by 1.5% to £31.75 per sq ft.
BNP PRE head of offices Dan Bayley said: “It is unsurprising that occupancy rates have remained fairly stable across the country, as occupiers are still looking to secure good deals within Grade A offices. Positively, the South East market is performing well, as activity levels have started to pick up. The markets north of the M25 have also seen rental growth.
“The peripheral west London markets of Chiswick and Hammersmith have once again performed well, reflecting the popularity and strength of demand for space in these locations, boosted by the close proximity to London. In many northern locations, rental performance has been fairly flat, reflecting the more subdued activity levels.”
chris.berkin@estatesgazette.com
