Standing at 8.51m sq ft at the end of Q2 2017, total office supply across the Thames Valley has risen marginally, to 8.54m since the previous quarter. Compared with the same quarter in 2016, this represents a year-on-year fall of 6.39%.
The supply chain is heavily reliant on new development. We may see an accelerated fall as investors/developers respond cautiously to a likely reduced letting velocity and volume, in the short to medium term. Although there may be a short-term over supply in some locations, an under-supply will follow as new development is delayed, in reaction to a short term uncertain market.
Grade A supply is now 51.57% of the total, compared with 50.46% in Q1 2016.