Q3 2014 has seen city centre take-up of 140,278 sq ft, spread over 29 deals with the largest to Ovo Energy at The Core. Although this figure is a slightly down on Q2 it is still encouraging and one of the best quarters for take-up in recent years.
To date take-up stands at 435, 623 sq ft, currently the second highest total in six years. With a number of deals still in solicitors’ hands due for completion in Q4, this year is could see the highest take-up since 2008.
Out-of-town, take-up in Q3 is high at 338,000 sq ft but this is predominantly due to the 63,000 sq ft deal to TSB at Keypoint. Q4 is not looking as good; we predict the year-end figure to be just below the 400,000 sq ft mark, but, bar 2010, this is still the highest we have seen since 2007.
Deal numbers have significantly increased this quarter, bringing current annual totals to 100 in the city centre and 55 out-of-town. If this trend continues, year-end figures will be approaching 2005/2006 figures with the city centre nearing record numbers – currently 139. An increase in numbers of city centre deals has coincided with a drop in the average deal size to 4,500 sq ft; a good indication of an active market.
Out-of-town sees a different story where an increase in average deal size highlights the continued oversupply of smaller space.
For a detailed breakdown of Q3 2014 take-up by grade, please click here or on Chart 2 to the left of this article.