Take-up has been strong across nine largest regional U.K. office markets during the second quarter, with activity heavily skewed toward larger deals, city center markets and the “modern” sectors of flexible workspace, according to Avison Young’s The Big Nine quarterly update.
Figures from the report, which covers Birmingham, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Liverpool, Manchester and Newcastle, show office investment volumes during second quarter amounted to £575 million ($699 million), 5 percent up on the 10-year quarterly average.
In the occupational market, second-quarter activity was 10 percent up on the long-term average, bringing the half-year total to 4.3 million square feet (6 percent up on the average).
Charles Toogood, Avison Young’s principal and managing director, national offices, said: “Activity in second quarter was led by a number of large city center deals, combined with record levels of activity in the flexible workspace sector. Second quarter alone has seen over 600,000 square feet of flexible workspace deals, which is already similar to the annual totals in the previous two years.”
The flexible workspace deals included the two largest ever in the sector across the regional markets: 120,000 square feet to Spaces at 125 Deansgate in Manchester and 92,000 square feet to WeWork in Birmingham. In addition, there were two further leasings to WeWork in Birmingham, and the sector accounted for more than one-third of city center take-up in Bristol, Edinburgh, Liverpool and Manchester.
In investment, overseas investors continue to drive the market, accounting for 85 percent of transactions during the second quarter. Activity was heavily skewed toward Birmingham and Edinburgh in the second quarter, totaling approximately £200 million ($243 million) each and representing 75 percent of the total.
To read the report, click here.
