There is less available space in UK offices, while rents are at a record high, according to the City Centre Office Markets 2001 report by Chesterton.
20 major UK office centres participated in the research, which found that new space available had increased by 22.5% to 178,000 sq m (1.9m sq ft). At the same time, second-hand space had fallen by 12% to 713,000 sq m (7.7m sq ft) and total space available by 7%.
The vacancy rate had also fallen, to 6.3%—the lowest for ten years. Rents however had gone up for the fourth year in succession, by 10.5% to 219 per sq m (20.34 per sq ft).
Space availability in Reading, Newcastle and Glasgow increased which was thought be caused by the number of new developments in those areas. The amount of completed space was up by 35% compared with last year.
Business parks were seen as an alternative to city offices with 939m being invested in these types of developments, compared to 93m in 1995.
—Jessica Jarlvi
Reprinted with permission; copyright 2001 i-FM
