The Big Nine - Quarterly Review of The Regional Office Occupier Markets, Q2 2012
Economic uncertainty following the decline in economic growth and events in the Eurozone is continuing to impact on business confidence.
This is reflected in take-up levels in Q2, with activity in a number of cities considerably down at the half year stage.
In many cases enquiry levels are holding up and there are a large number of latent requirements in the regional office market but companies are not committing. Take-up in many cities is dominated by much smaller transactions with +50% of take-up of grade B quality – coupled with fewer large grade A deals. There is currently a healthy supply of good space in the market and little pressure on occupiers to commit. Landlords are keen to re-let or re-gear and offer increasing flexibility on lease terms and tenant only break options. Latent demand is building but this is unlikely to be documented until confidence improves.
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