Citation
(2001), "The UK office market drives out of town boom", Property Management, Vol. 19 No. 1. https://doi.org/10.1108/pm.2001.11319aab.014
Publisher
:Emerald Group Publishing Limited
Copyright © 2001, MCB UP Limited
The UK office market drives out of town boom
The UK office market drives out of town boom
A shortage of prime office space in UK leading cities is further fuelling the current office market pursuit for out of town locations according to the October Weatherall Green & Smith UK office report.
The separate occupier and investor reports show that for the first half of 2000 demand for office space in regional UK centres is outstripping supply.
Strong out-of-town activity can be seen in regional areas including Solihull and Salford, which are becoming more attractive alternatives to Birmingham and Manchester respectively. Shortages of space are influencing the South West office market, where Cardiff is attracting investment away from Bristol, its traditionally popular neighbour.
Mark England, Weatherall Green & Smith offices partner said of the escalation:
A shortage of Grade A speculative development space in the traditional city centre cores is resulting in further pressure on out of town locations. Pre-letting agreements for high profile city centre schemes are increasing for high-specified floor plates over 10,000 sq. ft (929 m2).
The boom in the out of town market has forced per sq. ft rent increases of between 8 per cent and 15 per cent in the last six months and this trend looks set to continue for at least the next quarter. In Scotland, Edinburgh now commands the most expensive office rents outside London.
This demand continues to be driven by the IT and telecommunications sectors, with financial institutions also seeking high specification units as their business focus increasingly moves away from the high street.
Guy Grantham, out of town research analyst for Weatherall Green & Smith said of the indications:
Although the office sector continues to perform better than its retail and industrial counterparts, the shortage in quality space throughout core cities such as London, Bristol, Birmingham and Glasgow, has encouraged more and more occupiers and investors to look outside these locations.