Business Parks Review - Summer 2011
Report Authors: GVA
Report Summary:
Occupier activity on the UK’s business parks picked up in the first half of 2011 but remains relatively subdued amid persistent economic uncertainty. The North/South divide deepened as strong take-up, falling availability and rental growth in the South East contrasted with persistent signs of weakness in most regions. The level of construction activity nationally fell to a new record low for the business parks survey as developers and investors remain in cautious mood.
The relatively low take-up observed reflects the ongoing caution among occupiers amid persistent weakness in the private sector at a time when government austerity measures begin to kick in. With public sector occupiers accounting for around a fifth of business park space, the onset of government spending cuts is a particular area of concern. However, there were some bright spots in the latest survey results. Take-up in the South East and Eastern regions was well above average levels and there were some notable pre-lets at Oxford Business Park and Strathclyde Business Park outside Glasgow.
At the national level annual headline rental value growth turned positive for the first time since 2008, but there was a high degree of geographic variability and underlying incentives remain generous.
The amount of office space under construction in UK business parks is at its lowest in the survey’s sixteen year history.
About the Author:
GVA's award winning Research team provides high quality research and analysis to the business and its clients. Our market commentaries, thought leadership pieces and consultancy advice drive industry debate, distinguish GVA from its competitors, and add value for our clients.
Business parks make up one of the more complicated commercial property sectors.
The increasingly tortuous planning regime and ongoing need to address sustainability issues mean we're in demand from many clients in this sector.
Our knowledge and experience is supported by extensive sector based research. This ensures we're involved in some of the UK's largest business parks.
