Although take-up in Q1 reached just 113,326 sq ft, this was in fact a 107% improvement on Q1 2012. Levels have not surpassed this since Q1 2010.
Disappointingly, no deals above 12,000 sq ft were seen in the city centre, which resulted in a low average deal size of just 3,778 sq ft.
On the face of it, the statistics indicate another tough year ahead. What they do not show however, is the volume of larger requirements that are soon to be fulfilled including; DAC Beachcroft (circa 60,000 sq ft); Deutsche Bank (circa 100,000 sq ft); and DWF (circa 30,000k sq ft).
With continued strong demand driven by lease activities, grade A supply - which now stands at less than two years - will continue to erode; resulting in a hardening of the incentive packages which occupiers have enjoyed over recent years.
For an annual comparison of Q1 take-up click here.