Regional offices enjoy strongest quarter so far in 2022
Take-up of office space across the big six regional markets in the UK has topped over 1m sq ft in the third quarter of 2022, showing its best performance so far this year.
According to the figures from Savills – which cover Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester – take-up of offices grew by 23% quarter-on-quarter.
Edinburgh (pictured) saw the largest increase in office take-up over the three months to 30 September, recording a 138% growth on the three months to 30 June.
Take-up of office space across the big six regional markets in the UK has topped over 1m sq ft in the third quarter of 2022, showing its best performance so far this year.
According to the figures from Savills – which cover Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester – take-up of offices grew by 23% quarter-on-quarter.
Edinburgh (pictured) saw the largest increase in office take-up over the three months to 30 September, recording a 138% growth on the three months to 30 June.
Birmingham, Manchester and Leeds also reported quarterly increases in take-up at 61%, 29% and 7%, respectively.
Turning to rental values within the regional markets, Savills reported that Bristol has achieved a rental growth of 12% so far in 2022, with headline rents for the city reaching £42.50 per sq ft.
The prime rent for Leeds rose to £36 per sq ft in Q3, up from £34 earlier in the year.
Savills attributed increases to declining supply across the regional markets alongside issues surrounding the viability of developing new offices. The company expects demand for existing workspace to remain competitive.
Savills head of national office agency James Evans said: “In spite of challenging economic metrics, the office occupational market is showing continued resilience in the regional markets. We have seen very limited evidence of leasing transactions aborting or indeed negative impact on headline rents.
“The forthcoming Autumn Statement and its ability to provide confidence to business leaders will have a significant impact on occupational demand as we head into 2024.
“Supply side constraints will come into sharper focus as development viability is increasingly marginal. Those that sit on the fence too long are likely to find there are increasingly fewer opportunities to relocate to sustainable, contemporary accommodation.”
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