Market snapshot

Office Market Pulse M1 Corridor Q4 2013

The M1 Corridor office market finished the year on a high with total take-up reaching record levels across the region during Q4 2013.

You can download a PDF version of this M1 Corridor Office Market Pulse, or to read and sign-up to receive Office Market Pulses from other UK centres, click here.

In this issue:

Take-up reaches new highs across the M1 Corridor

  • Milton Keynes saw a series of significant transactions in Q4 2013 with office take-up reaching 110,383 sq ft; the highest quarterly take-up since 2009. Total take-up for 2013 surpassed both 2011 and 2012, amounting to 207,822 sq ft.
  • Take-up in Northampton accelerated to 58,902 sq ft in Q4, returning an annual office take-up of 166,450 sq ft; the highest level of market activity since 2010.
  • Against a backdrop of the lowest level of take-up for five years last year, Luton office take-up totalled 130,140 sq ft in 2013 compared to 28,845 sq ft in 2012. This has been partially fuelled by a number of office to residential conversion sales.

For an annual comparison of take-up, click here.

Key transactions Q4 2013


Size (sq ft)


Tenant / Purchaser

Lease information

The Pinnacle,
Central Milton Keynes



Aberdeen Asset Management


Transport Catapult




Castle House, Marefair, Northampton








£25.88 per sq ft
Will be demolished and replaced with a park as part of the ‘Gateway to Northampton’ Scheme.

Wesley House, Luton




£47.00 per sq ft
Acquired for residential conversion

Erosion of office supply continues

  • The continued decline of available office space during Q4 has resulted in the lowest levels of supply since 2009 across the M1 Corridor markets.
  • Letting activity and sales of obsolete office space for residential conversion are reducing the overall supply of second-hand buildings, further compounding the outlook for occupiers seeking alternative space. Grade A supply in Milton Keynes, Luton and Northampton reduced by 27%, 14% and 29% respectively.
  • For landlords and occupiers alike, the acute shortage of grade A space is likely to drive significant investment into second-hand office stock in the short-term.

For an annual comparison of supply, click here.

Strength in demand

  • Q3 2013 saw a sea change in levels of demand along the southern M1 Corridor, and this trend continued throughout Q4 and into the start of 2014.
  • Across the M1 Corridor markets, total demand registered in 2013 reflects the highest recorded levels against five-year averages; Milton Keynes 17%, Luton 109%, and Northampton 43%

For an annual comparison of demand, click here.

Regions see upturn in investment activity

2013 was the year that the market started to witness a significant change in the investor sector as the weight of money circling London finally started to impact the regions.

The M1 Corridor has seen a major shift in the volume of regional activity, transacting circa £48m during Q4 2013. To view the region's key transactions, click here.

To read our latest UK Investment Transactions (UKIT) report, please click here.

Contact us now

Ian Leather
Head of Office Advisory (Northampton - Milton Keynes - Luton)

01604 664399

How can we help?