Take-up reached 185,401 sq ft in Q4, matching the final quarter in 2011 and far exceeding all other Q4 figures since 2007.
Although yearly take-up is approximately 25% down on the long term average, the last two quarters give cause for optimism with average deal size increasing to over 5,000 sq ft - more than double that achieved in a disappointing first half of the year.
Other than Two Snowhill, there are no new build office developments currently under construction. Until confidence in occupier demand returns, the only new space that will come to market is through the refurbishment of existing stock.
Highcross and Bruntwood have demonstrated, at Livery Place and Centre City respectively, that a well conceived and executed refurbishment of well located space will generate interest even in the most challenging of markets. However, with several buildings becoming close to fully occupied and others being snapped up for educational and leisure uses, such opportunities are becoming increasingly difficult to come by.
For an annual comparison of take-up click here.