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'Lack of confidence' in North East market

THERE was little slowdown in city centre and out-of-town office take-up activity according to the leading quarterly regional office market report by GVA.

THERE was little slowdown in city centre and out-of-town office take-up activity according to the leading quarterly regional office market report by GVA.

Regional take-up reached 6.38 million sq ft in 2012, similar to the annual average for city centre and above average performance for out-of-town.

The Big Nine reports the regional city centre take-up totalled 995,095 sq ft in Q4 and 3.77 million throughout 2012, 6% below the annual average. In Newcastle over the year there was 606,259 sq ft of space taken out of town and 168,147 sq ft in the city centre.

Carl Potter, director and head of National Offices at GVA, said: “A lack of confidence in what remains a steady market is accentuating a state of continued unease.

“The reality is that, despite slow progress with deals across the board, transactions are not letting up.

“Nevertheless, a number of cities are in the position where take-up in the future is going to be reduced as a consequence of the lack of future supply.”

City centre take-up across the nine GVA regional offices for Q4 was similar to the average, while Birmingham, Bristol and Manchester finished the year above the quarterly average.

Office take-up in the out-of-town markets was 767,000 sq ft in Q4 an incredibly strong performance which stood at 34% above the quarterly average. The stand-out city centre for 2012 was Edinburgh which showed the strongest performance as a result of activity in the first half of the year, while take-up in Bristol and Leeds was also above average.

Activity was strong in Birmingham at nearly 217,000 sq ft, and with over 100,000sq ft of deals in Manchester and Newcastle.

Tony Wordsworth, director, national markets – offices at GVA, Newcastle, said: “It will be interesting to see how the pendulum swings between the respective city centre and out-of-town business parks over the next few years. “Many of the already established regional office parks will see only little or no new-build activity until the available office space is taken up and until the economy further improves”.

GVA has 12 offices and 700 fee earners across the UK, GVA offers the country’s largest property consultancy outside of the capital.

 

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