Take-up across the UK’s six largest office markets rose by a fifth in the first quarter of 2016, despite fears of a slowdown ahead of the EU referendum.
According to EGi’s Regional Office Research, 1.1m sq ft of space was disposed of in Q1, an increase of 22% on the 942,000 sq ft shifted in the same period in 2015 and 11% up on the 986,000 sq ft disposed of in Q4, which is traditionally busier.
Take-up in the regional markets has been driven by growth in the wider economy and increasing “northshoring” – the relocation of back-office functions away from London.
The biggest deals during the quarter included a 155,000 sq ft letting at Bothwell Exchange in Glasgow, and 90,000 sq ft at 1 Chamberlain Square in Birmingham.
The regional growth comes as London disposals have been more subdued.
Take-up in the first quarter in the capital was 3.1m sq ft, a fall of 27% on Q4, but 6% above Q1 2015.
However, regional take-up did not rise across the board: Manchester, which has seen stronger growth previously and thus lower availability, saw disposals fall by 37% on Q1 2015, to 139,000 sq ft.
Total annual take-up was 4.4m sq ft. Total availability now stands at around 2.9 years.
