Annually take-up has reduced from 1,888,705 sq ft in 2016 to 1,750,576 sq ft (-7.31%) in 2017. Prime take-up in 2017 has increased from 2016 to 551,981 sq ft (65%). 2017 secondary take-up decreased from 2016 to 1,198,586 sq ft (-22%).
As shown in the graph below, total take-up in Q4 amounted to 394,005 sq ft, reflecting a decrease of 110,354 sq ft (-21%) from Q3. However, the uptake in Q3 can be accounted for by two significant transactions at Mountpark, Southampton totaling 160,660 sq ft.
In comparison with Q4 2016, there has been a minor decrease in total take-up of 45,485 sq ft (-10%).
Prime take-up has decreased by 84,560 sq ft from Q3, to 143,514 sq ft (-158%). Although, this again, is attributed to the significant transactions at Mountpark, Southampton in Q3. In contrast, however, prime take-up for the quarter was at 143,514 sq ft, 114,726 sq ft (498%) above that of Q4 2016, underlining the lack of supply in previous years. We expect to see this trend continue well into 2018.
The graph below clearly shows prime take-up steadily increasing over the past 5 years, which aligns with the clear availability of new speculative developments along the South Coast.
When comparing secondary take-up in Q4 2017 to Q4 2016, it has fallen slightly by 160,211 sq ft (-39%), with a 25,794 sq ft (-9%) reduction on Q3 2017. In our opinion, this is due to an increase in prime take-up and tenants renewing their leases on existing premises.