Total take-up was 419,366 sq ft in Q2, a decrease of 3% from the previous quarter.
Although this represented a fall of 38% from Q2 2016’s take-up of 680,316 sq ft, two major transactions fell in that quarter which skewed the figure upwards.
We expect prime take-up to increase, particularly towards the end of the year, as new developments, such as Alpha Park at Chandlers Ford, South Central at Nursling, Mountpark, Southampton and Hamilton Business Park at Hedge End, complete. A number of units are already under offer which will enhance 2017 take-up at the year end.
Take-up of secondary stock has fallen by 11.5% quarter-on-quarter and by 22% year-on-year. This is reflective of a lack of quality stock being available against a back drop of the significant amount of grade A space about to hit the market.
Take-up of new stock will boost market churn and the amount of secondary stock available will increase as a result, especially as landlords take the initiative to refurbish older stock.