Commercial property consultants

Office take-up across the Grade B / sub-5,000 sq ft market has seen a further increase, accounting for 44% of the total take-up in Q4 (37% performance overall in 2012). Occupiers are using lease events to downsize and relocate, with landlords of this type of space now beginning to concentrate on value for money. 

Total take-up for the quarter reached 68,482 sq ft, which is a slight increase on both Q3 figures and that for Q4 2011. However, it is almost 50% less than the first two quarters of the year.

For a detailed breakdown of city centre take-up, please click here.

Rental levels in the sub-5,000 sq ft bracket vary significantly, from £10.00 to £18.00 per sq ft depending on the quality of the building and location. 

In terms of Grade A, the recent letting at Capella achieved a rental of £26.00 per sq ft; the top end of Grade A rentals which range from £21.50 to £28.00 per sq ft.  At these levels, it is understood substantial incentives will be available as some landlords remain intent on maintaining heading rents.