Property News South East Snapshot confirms office resurgence

South East Office Snapshot

The latest South East Office Snapshot from Colliers International has revealed that whilst most of the Thames Valley saw a fall in vacancy rates over Q1 2011, there was just a modest uplift in prime rents in the region.

Key findings

  • Two thirds of Thames Valley centres saw a fall in vacancy rates. Overall Thames Valley availability was down by 1.7% quarter on quarter and by 5% year on year.
  • Availability rising in North and South M25 as increasing amounts of second-hand space is brought to market . North M25 saw vacancy create a record high of 20%.
  • Thames Valley take-up rose by 17% quarter on quarter.
  • Prime rents remain broadly flat with some modest uplift in Thames Valley, rising by 2.9% year on year.

Philip Papenfus, Head of South East Offices at Colliers International commented: “We are pleased to report that vacancy rates in the Thames Valley have now fallen in the last four successive quarters.

“It is also a positive sign that we are now seeing some resurgence in speculative office development and funding.

“In terms of demand, the retail and leisure sector saw a surge in activity accounting for 29% of total take-up such as John Lewis taking 64,981 sq ft. helping raise sector take-up from a 16% market share during 2010 as a whole.

“The Technology and Media sector continues to see healthy growth accounting for 25% of total demand, up from 21% in 2010. Pharmaceuticals, Energy and Business Services remain unchanged as the third, fourth and fifth most active sectors respectively.”

Two thirds of Thames Valley centres saw a fall in vacancy rates. Overall Thames Valley availability was down by 1.7% quarter on quarter and by 5% year on year.

Glasgow