The demand for office space in Edinburgh, Glasgow and Birmingham remain particularly high despite the uncertainty surrounding a potential Brexit.
That’s according to CBRE, which has reported that demand for office space in the UK regional office markets has remained strong at the outset of 2016 with the afore-mentioned cities coming top for year-to-date uptake – with total volumes adding up to around 285,000sq ft in each.
It says a total of 1,381,350 sq. ft. of office space was taken in the ‘Big 6’ regional cities in Q1 – marginally below the final quarter performance of 2015 but 27% higher than the five quarterly average, with the leading cities being Edinburgh, Glasgow and Birmingham.
Each of these regional markets has substantially outperformed its five-year quarterly average and have each supported a strong level of pre-letting activity.
In Glasgow, the Q1 volume is twice the quarterly average. The strong start in this market is the result of Morgan Stanley signing a large pre-let for 154,814 sq. ft. at the first phase of Bothwell Exchange.
Emma Jackson, associate director of CBRE Research said: “We have seen a strong level of occupier activity in the ‘Big 6’ regional office markets in the first quarter of 2016. Indeed, the strength of activity in Birmingham has led to an increase in prime rental levels to £32.00 per sq. ft. Given these volumes and the positive amount of pre-let activity we have seen, occupier appetite is clearly resilient. Any effects surrounding the uncertainty of a potential Brexit have yet to materialise.”