Demand for UK commercial office space soaring to new highs
A new report published by real estate group Knight Frank suggests that demand for commercial office space appears to be on the rise all across the UK.
According to the agent’s latest Regional Office Market Review 2018, demand for office space in large regional cities soared to a ten-year high in 2017, with take-up exceeding an impressive seven million square feet in total.
Cities such as Birmingham, Manchester, Edinburgh, Cardiff, Leeds and Sheffield all saw sharp rises in demand throughout the year, with businesses in the professional services and technology, media and telecommunications (TMT) sectors predominantly driving demand.
The report reveals that take up in Birmingham and Manchester combined exceeded one million square feet.
Meanwhile, Leeds outstripped even this, with over a million square feet of office space let in and around the city – 88 per cent higher than the 10-year average.
According to the data, companies in the professional services sector accounted for 20 per cent of all office space let in regional cities, while TMT businesses were involved in renting 18 per cent of all office space.
Commenting on the data, Alastair Graham-Campbell, Head of UK Cities at Knight Frank, said that the figures indicated that business confidence was robust across many of the UK’s major cities.
He added: “Demand for office space in the regions is at its highest in a decade, supported by headcount growth, business restructuring and new market entrants.
“The volume of office space leased in 2017 underlines that the reinvention of our regional city centres is delivering the right product to attract major occupiers.
“The challenge is to continue to deliver the space needed to meet demand.”