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Premier rent levels hit a new high, says property study

The city continues its dominance of the M1 South office market, with rent for premier premises reaching £22.50 per sq ft, Bidwells’ latest Business Space Data Book has revealed.

The autumn Business Space Data Book  takes an in-depth look at key office and industrial markets across the region. Prime office headline rents have now grown by 12.5% over the past two years, while rents on good-quality second-hand space have grown by 13.6% over the same period.

  • Milton Keynes accounted for 56% of total take up in the M1 South office market in the first six months of the year
  • Take up in the M1 South industrial market recorded its highest level of activity in four years
  • Prime office rent for Milton Keynes is £22.50 per sq ft, Northampton £15 per sq ft and Bedford £13.50 per sq ft.
  • Prime industrial rent for Milton Keynes is £6.75 per sq ft The figure for both Northampton and Bedford is £5.75 per sq ft

Roger Yates, head of business space at Bidwells Milton Keynes, said: "The M1 South distribution market has continued show the levels of activity experienced over the past six years and the first six months of the year have seen 3.4m sq ft of take up and strong occupier demand, suggesting that 2015 may achieve record levels of activity.

"The Milton Keynes office market has now developed into a location capable of attracting major office occupiers with good quality infrastructure and a sound business base while other locations in the M1 South have struggled to attract larger corporate occupiers.

"The recent Centre for Cities Report identified Milton Keynes as the most dynamic business environment in the UK outside of London, while its near neighbour Northampton, provides the third most dynamic business environment. Both of the M1 South locations create 23-25% more businesses per 10,000 population than the UK average per annum.

"Milton Keynes is now emerging as the dominant office location in the region, linking London with the major Midlands and Northern office locations as well as providing an important link between the innovation centres of Oxford and Cambridge."