South West England property consultants report on regional office space sector

Office space take-up levels stabilised and in some locations increased in 2010

Article posted: 22 Feb 2011

To mark the start of their centenary year property consultants Alder King have released Market Monitor 2011, an annual research report analysing the commercial property market in the South West of England over the last 12 months.

The report notes that take up levels of office space in the South West stabilised and some key centres including Bristol, Gloucester, Swindon and Cardiff saw significant improvement over the previous year’s levels.

2010 saw a marked increase in the overall take up of office space in Swindon compared to 2009. The figures were, however, distorted by the Motorola letting of 58,400 sq ft offices at Trilogy, Kembrey Park (pictured).

Take up of office space in Gloucester for 2010 totalled 200,000 sq ft and significantly exceeded the previous year’s figures. As in recent years, the majority of take up occurred in out of town and business park locations, although there was a noticeable improvement in the take up of city centre space.

2010 witnessed a slight increase in the level of occupier demand for office space in Bath, albeit the total figure remained well below the 10 year average. The overall level of transactions was limited with most activity coming from the financial services, service and professional sectors.

There was an upturn in demand in both the city centre and north Bristol office space markets. Overall take up was approximately 44% up on the low level recorded in 2009. Take up was spread amongst a diverse range of sectors including in particular the financial services, professional and service sectors.

Take up of office space in Cardiff for the first six months amounted to circa 160,000 sq ft, almost a 100% increase in comparison to the previous year. There was more consistent demand which continued through to year end. 75% of transactions were under 5,000 sq ft. A strong final quarter meant the end of year total was much better than expected with notable deals including Admiral Insurance’s 41,000 sq ft short term let at Brunel House and Capital Law’s acquisition of 18,500 sq ft at Atlantic House.

Swansea office space take up decreased by around 50% in comparison to 2009 levels and was 55% down on the five year average of 121,000 sq ft. Only two of the 23 transactions were over 5,000 sq ft, the most notable Virgin Atlantic’s 11,300 sq ft letting at the newly refurbished Alexandra House.

There was a gradual take up of new office space in Exeter, with further lettings at The Senate in the city centre to Thomson Reuters and Trowers & Hamlins. 

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Posted by Aree J Rand