South East: Office take-up highest since 2013

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TBM Team

Investment volumes in South East offices reached approximately £2.9 billion last year, 42% above the 10-year average, according to Knight Frank.

Total office take-up in the South East in 2016 rose 2% higher than 2015 and 4% above the 10-year annual average, reaching 3.6 million sq ft. KF said this is the highest level recorded in the South East since 2013.

Office take-up in the South East for Q4 reached 945,000 sq ft, 10% above the 10-year quarterly average.

KF added: "With speculative development completions of 765,224 sq ft in Q4, total availability has moved up in all submarket areas in the past 12 months. However, vacancy levels remain between 11% and 27% below the 10-year average, and there remains a restriction on choice in certain key markets."

Tim Smither, head of national offices investments, Knight Frank, said: “We have seen continued investor confidence, which in turn has supported the number of transactions, illustrated by the high value sales completed in 2016. Occupier activity in the South East remained steady in the final quarter, meaning that overall take-up held up well. Following the referendum it was feared that the market would slow and decisions would be delayed.

"However, with occupier take-up above the long term average, availability below the 10-year average and a healthy investment appetite toward the right asset, the end of 2016 proved this theory wrong. 2017 could be a year of opportunity in the South East office market.”

Source: CoStar

TBM Team