South East Snapshot confirms office resurgence

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.