Speculative office opportunities set to rise

There is more speculative office development on the horizon, according to the latest regional office market report from Savills. A limited development pipeline, increased tenant demand, a significant lack of grade-A space and rental growth prospects are all factors. The report finds that the speculative development pipeline is currently 42% up on six months ago, with 60% of the current pipeline located in Edinburgh and Glasgow, where seven schemes totalling 850,000 sq ft are due to complete in 2015 and 2016. The first half of 2014 saw a marked change in sentiment within the regional office markets. Take-up figures represented an increase of 19% on the same period in 2013, at 4.7m sq ft. Savills has forecast 2014 office take-up figures will reach 9.2m sq ft – a 3% rise on 2013.     Richard Merryweather, joint head of UK investment at Savills, said: “The improving office occupier market in the UK regional cities, coupled with increased requirement levels, is helping to drive investor demand in this sector, most notably from the UK institutions.” amber.rolt@estatesgazette.com