With 2015 set to be a stellar year for regional city growth, leading commercial property adviser Bilfinger GVA has compiled key statistics on Grade A office markets for the Big Nine UK cities to compare against each other in a kind of property industry “top trumps” system.
Manchester (401,406 sq ft) and Edinburgh (333,351 sq ft) topped the charts in terms of Grade A take-up in 2014, while Edinburgh (320,000 sq ft) and Glasgow (282,000 sq ft) led the way in terms of immediately available space. Manchester (614,000) and Leeds (487,650 sq ft) top the heap in terms of Grade A space under construction.
Edinburgh saw the largest leasing transaction in 2014 thanks to the 108,564 sq ft deal signed by Standard Life Investment, with Manchester’s 104,312 sq ft fulfilment for Slater & Gordon narrowly squeezed into second spot. Meanwhile Manchester and Birmingham top the prime rent pile at £32 and £30 per square foot for prime Grade A space respectively.
Carl Potter, Senior Director and National Head of Offices at Bilfinger GVA, comments: “The level of development of new offices within the UK’s regional centres has increased and this has been supported by both investor and developer sentiment; but more pragmatically is a consequence, and realisation that demand levels are clearly able to substantiate new stock.
“While this will assist in pushing out the tipping point for another year, across the UK Grade A supply has continued once again to diminish. Real levels of rental growth are back as a consequence and as demand improves further this increase will be accelerate.
“It would be fair to say that 2014 has been a year of the regional markets proving their worth, while 2015 will be the year when they truly come back into vogue.”
