Prospects look brighter for office property market, say analystsSep 29, 2013
Projection for annualised growth reflects the fact that GDP has grown for the last two consecutive quarters (Q1 0.3% and Q2 0.7%).
This quarter-on-quarter growth will provide businesses and consumers with the confidence needed to boost the economy, says Bidwells. Certain locations are stronger than others but there is hope that, with the ripple effect, these will soon see the benefit.
The report highlights a growing regional trend amongst major corporates – the rise of the owner occupiers which "build for purpose”.
The industrial market, whose take-up fell below the annual average last year, is showing signs of ruder health as large pre-lets push take up to within 12% of the overall total in 2012.
The 625,000 sq ft pre-let to John Lewis at Magna Park in Milton Keynes has boosted activity. If levels of activity are continued in Milton Keynes, new record highs could be recorded, Bidwells believes.
Milton Keynes office partner Roger Yates said: "Milton Keynes office and industrial market saw good levels of take-up in the first half of 2013. Supply of Grade A space is tight and I anticipate that we will begin to see some upward pressure on headline rents as occupiers compete for the best space.
“This demand is also causing a number of occupiers to consider refurbishing second hand space.”