Spotlight: Regional Office

Market Review & Outlook

Regional Office Market Review and Outlook
Regional Office Market

28 March 2017, by Clare Bailey

We continue to see great opportunities in 2017 and beyond for regional office markets

■ For the fourth consecutive year, total take-up in the UK regions, excluding London, surpassed the long term average of 9.1m sq ft, reaching an impressive 9.6m sq ft, despite a year of political uncertainty.

■ Perhaps unsurprisingly, regional supply levels have continued to fall across the UK regional markets, particularly within the M25 market.

■ Static or positive rental growth is forecast across a number of regional office markets in 2017.

 

■ Following a very weak third quarter, UK regional office investment volumes bounced back during the final quarter of 2016, to reach £1.4bn, 15% above the 10-year quarterly average.

■ While we expect overseas investors to remain prominent in 2017, we also expect the UK Institutions to resume activity.

■ UK regional prime office yields remain attractive at 5.25%, and having stabilised post EU referendum, we expect them to remain at this level.

Articles from Spotlight: Regional Office Market Review & Outlook

Review and outlook

28 March 2017

Review and outlook

For the fourth consecutive year, total take-up in the UK regions, excluding London, surpassed the long-term average

 
 

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Key contacts

Clare Bailey

Clare Bailey

Associate Director
Commercial Research

Savills Margaret Street

+44 (0) 20 7409 8863

 

Jonathan Gardiner

Jonathan Gardiner

Head of
National Office Agency

Savills Margaret Street

+44 (0) 20 7409 8828