South East Snapshot confirms office resurgence

Colliers report reveals overall fall in Thames Valley vacancy rates in Q1

Article posted: 03 May 2011

The latest South East Office Snapshot from Colliers International has revealed that whilst the majority of the office space market in the Thames Valley saw a fall in vacancy rates over Q1 2011, there was just a modest uplift in prime rents in the region.

Two thirds of Thames Valley centres saw a fall in vacancy rates with overall availability in the Thames Valley down by 1.7% quarter on quarter and by 5% year on year.

The rise in availability of office space in the Home Counties is due to increasing amounts of second-hand space being brought to market. North M25 saw vacancy create a record high of 20%. 

Thames Valley take-up rose by 17% quarter on quarter, however, prime rents remain broadly flat with some modest uplift in Thames Valley, rising by 2.9% year on year.

Philip Papenfus, Head of South East Offices at Colliers International commented: “We are pleased to report that vacancy rates in the Thames Valley have now fallen in the last four successive quarters. 

“It is also a positive sign that we are now seeing some resurgence in speculative office development and funding.

“The Technology and Media sector continues to see healthy growth accounting for 25% of total demand, up from 21% in 2010. Pharmaceuticals, Energy and Business Services remain unchanged as the third, fourth and fifth most active sectors respectively.”

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Posted by Sara