A Positive 2016 For UK Office Market

Posted on 22 January, 2016 by Chris Grigorovsky

The UK office market in 2015 saw strong performance and is set to follow into 2016, according to reports.

A Positive 2016 For UK Office Market

In 2015, there was a substantial demand in the British office market, mainly the sub markets such as London, Bristol, Manchester and Liverpool.

Prime office in the core sub markets was forecast to continue into 2016, with only 2.5% of new supply being apart of the total UK stock.

Overseas capital is set to move into more core sub markets other than London, with limited supply increasing interest in more prime regional and secondary markets such as Cardiff and Newcastle.

Also in 2015, there was a strong occupier activity which drove rental growth, averaging at 2.2% nationwide. Meanwhile, Central London and South East offices had the highest rates, at 3.4% and 2.1% respectively.

Looking into this year, the British Chamber of Commerce noted that output growth will reach 2.6%, a higher amount than global EDP projections for Western European countries which is set at 1.75%, This will have an overall positive impact on the UK office market at large.

Growth in sectors like creative, media and tech, are in turn putting pressure on rents and driving vacancy rates to new lows.

Other sectors, such as the resurgence of financial and banking sectors, will benefit the UK office market over the next 12 months due to the employment increase.

At the end of 2016, rental growth rates are to be 4% higher than the past 10 year average, which will benefit landlords and investors who have assets in the core UK office markets.

A combination of positive consumer sentiment and low inflation, along with an above average in the latest optimism index, will lead to an encouragement in business investments and drive growth further across strong regional office markets.




Leave a Reply

Your email address will not be published. Required fields are marked *


Recent Posts

Aldi’s Expansion Plan

British Steel on the verge of collapse with over 20,000 jobs at risk

Paris watches as flames engulf one of France’s most famous landmarks

Debenhams on the brink of administration as board reject Ashley’s bid

Emmanuel Macron pushes for a new Europe with European Parliament elections on the horizon

Brexit impacts property market

Brexit uncertainty impacts the property market

Oxford_Street_Selfridges_Christmas_Decorations_2017

Creative Christmas window displays

Toronto downtown skyscrapers

Brief history of skyscrapers

Savvy promotions attract early Christmas sales for retailers

Are savvy promotions attracting Christmas sales for retail stores?

Greenfield developments

Greenfield developments: The facts

facts about converting chapels churches

Things to consider when investing in church or chapel conversions

Lincoln Castle 1068

Exploring Lincoln Castle’s Georgian and Victorian Prison

the leopard inn Burslem

Facts about The Leopard Inn, Stoke-on-Trent

ancient high house Stafford

The majestic Ancient High House in Stafford

retro video game arcades

Retro video game arcades: The comeback

industrial style offices

How to achieve an industrial inspired office