After a strong Q2 there was a decrease in the take up for grade A city centre space with 19,800 sq ft transacted in Q3. This is mainly due to the fact that Westfield Health took 40,000 sq ft at Milton House in Q2, slightly distorting the figures. Whilst take up of grade B stock increased by approximately 9,000sq ft, it doesn’t represent a notable differential from the previous quarter.
Enquiry levels are slowly increasing with a significant rise in the number of larger requirements over 10,000 sq ft in comparison to the majority of requirements in the first two quarters of the year being in the 5,000 – 10,000 sq ft bracket.
Demand in the out of town freehold market remains strong, particularly in the owner occupier market where occupiers are looking to purchase their own office building with ample car parking provision.