Markets for office space to rent in the major cities of the UK outside Greater London performed more positively than analysts had been expecting in the second quarter of 2012, according to Knight Frank.
A report from the property adviser on the subject covered progress within 11 of the UK’s most significant regional markets, where take up of offices was measured at 1.42 million sq ft for the three months to the end of June.
That overall take-up figure marked a 32 percent increase on the numbers for the same period of last year. However, some markets saw dramatically greater take-up of their offices than others, with Aberdeen’s unprecedented quarterly take-up of almost 548,000 sq ft credited with skewing the overall figures to some extent.
In fact, according to Knight Frank’s assessment, the bulk of office space markets outside London experienced an annual decrease in take-up of their properties. Interestingly, the three exceptions were all north of the border in the Scottish cities of Edinburgh, Glasgow and Aberdeen.
Another point emphasised in the report was that supply of new Grade A office space available to rent is generally dwindling across the country.
David Porter, head of commercial property for Knight Frank in Manchester, said: “The lack of high quality available space across the regional markets, particularly in prime areas, is slowly leading to deals hardening.
“Continued demand may trigger some speculative development albeit it is only likely on the back of a part pre-let deal. We do still remain optimistic as demand has continued to remain stable over the first half of the year.”
A report released by the same firm in recent weeks noted a significant increase in take-up of offices to rent in the City of London by technology businesses of various sorts. Its figures pointed to a near-doubling of office space being newly rented by technology, media and telecoms companies in the Square Mile from the first half of 2011 to the first six months of 2012.