EG senior analyst Graham Shone uses Radius Data Exchange to provide a snapshot of current market activity in the East of England.
Office sector data indicates that the East of England presents a significant opportunity for landlords and developers to jump on active current demand.
Analysis of 12-month take-up combined with current standing availability also indicates that the East of England is undersupplied for Office and Retail spaces when compared to the national average.
Industrial supply in the region, however, is much closer to the national figure of 2.8 years’ worth of standing stock.
With only 2.1 years’ worth of supply currently available in the retail sector, the East of England is the region with the most acute levels of demand relative to current availability.
Factoring in under-offer spaces, this would reduce the current retail absorption rate to just 1.9 years’ worth of standing stock available – making it the only region with a figure lower than two years’ worth of retail supply by this metric.
The sector has, of course, had a turbulent few months. With more nationwide closures imminent in the face of administrations, the East of England has not been immune to developer reticence to push ahead with new projects, despite the local supply line looking comparatively shallow by national standards.
The amount of retail space entering the pipeline through permissions granted has shrunk by 69% to 584,000 sq ft over the last year compared to the preceding 12-month period, against an average national drop of 39%.
The region has also seen annual drops in new space permitted in both the office and industrial sector, to the tune of 1% and 45% respectively. Contrary to retail, both of those property types have actually seen increasing volume of space permitted nationwide.
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To send feedback, e-mail graham.shone@egi.co.uk or tweet @GShoneEG or @estatesgazette
