Market snapshot

Office Market Pulse M1 Corridor Q2 2013

The M1 Corridor saw an increase in take-up during Q2 2013. With a number of deals in solicitors' hands, and enquiry levels across the region on the rise, we expect this trend to continue throughout the remainder of the year.

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:

Office take-up on the increase across the M1 corridor

  • Northampton saw 26,110 sq ft take-up in Q2; an increase of 9,136 sq ft on the same period in 2012. This comprised seven deals of sub 6,000 sq ft. With a number of deals in solicitors’ hands, we expect take-up to increase further in Q3. For a breakdown of take-up, click here.
  • Milton Keynes’ Q2 take-up reached a total of 21,257sq ft which comprised three sub 10,000 sq ft transactions. We expect to see an increased level of take-up as we head into Q3 and Q4 as a result of increased enquiry levels. For a breakdown of take-up, click here.
  • Luton saw a return to fortunes with take-up of 26,962 sq ft. The largest single transaction was 16,550 sq ft at Park Street West to the University of Bedford. For a breakdown of take-up, click here.

Significant occupational transactions Q2 2013

Property  Size (sq ft)  Landlord(s)  Tenant  Lease info 
The Atrium, Park Street West, Luton  16,550  Home Counties Estates Limited  University of Bedford  10 year lease with tenant options to break at year 3, 5 and 7
£10.00 per sq ft 

Noble House, Linford Wood, Milton Keynes 

6,857 Threadneedle Celaton

5 year lease  
£12.50 per sq ft

19 Scaldwell Road, Northampton 4,000  Undisclosed Ellapure 5 year term, stepped rent commencing at £10,000 per annum

Growing trend for freehold properties

  • Confidence is returning to the Northampton freehold office market, with five offices going under offer to owner occupiers this month. The properties range in size from 2,000 to 5,000 sq ft with a further 54,000 sq ft already under offer. With limited freehold options in the market however, owner occupiers are facing the same dilemma as leasehold occupiers in the search for quality office space. For a breakdown of Northampton office supply, click here.
  • There is 22,000 sq ft of freehold office space under offer in Milton Keynes, subject to change of use. Although further refurbished freehold stock is being brought to the market in central Milton Keynes, grade A office space still accounts for just 8% of supply. For a breakdown of Milton Keynes' office supply, click here.
  • Following the recent relaxation in planning laws, Luton has seen rising demand for town centre properties to convert to residential use. For a breakdown of Luton office supply, click here.

Regions see an upturn in investment activity

In the last quarter we have seen a clear shift in sentiment towards regional offices. While the focus of institutional investors remains largely with the 'Big 4,' there has also been an upturn in activity within the wider regional market from property companies and private investors. Recent transactions of note include:

  • 84 Colmore Row, Birmingham- £11.00m (5.8%)
  • Tungsten Building, Blythe Valley- £6.26m (6.94%)
  • Iceni Centre, Warwick- £10.85m (10.6%)
  • Worldwide House, Peterborough- £16.00m (12.70%) 

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

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