This year’s take-up in the UK’s nine largest office markets outside London is forecast to be the highest since the global financial crisis.
Research from Bilfinger GVA found leasing activity in the first nine months of this year was at its highest level since 2006, despite a quiet third quarter.
The agent’s latest Big Nine report said that 6.9m sq ft of city centre and out-of-town take-up had been recorded since the start of the year, with Manchester the strongest individual market.
Manchester city centre take-up was 50% above the five-year average, while Newcastle and Liverpool recorded take-up of twice the quarterly average and 48% above average respectively.
The largest deal of the quarter was a 60,200 sq ft prelet to NCC Group at the XYZ Building in Manchester.
Bilfinger GVA forecasts that Birmingham will have a record end to the year following a subdued third quarter owing to the volume of large deals under offer. It is forecasting year-end take-up of 900,000 sq ft in the UK’s second city.
Overall Q3 take-up in the big nine totalled 859,900 sq ft in the out-of town markets, down from more than 1m sq ft in the second quarter.
Carl Potter, senior director and national head of offices at Bilfinger GVA, said: “The lack of speculative development, and hence grade-A stock, is beginning to lead to prelet activity across a number of city centres.
“While higher take-up levels have been previously more noticeable in the larger UK core cities, there is now evidence that the smaller core cities, such as Newcastle and Liverpool, are also benefitting from increased activity.”
