Commercial Property markets around the world appear to be putting in a more sustainable recovery than first thought and none more so that the United Kingdom. The U.K. has seen a recent flurry of activity with CBRE reporting advances in the London Office market with leasing volumes well above long term averages for Q1 of 2013. The U.K. regions are also showing improved performance.
Andrew Marston, Director of UK Research at CBRE, commented “Stronger regional economic growth prospects, particularly within the service sector, is now beginning to be reflected in an upturn in enquiries and deals done in the South East outside Central London and many of the UK’s largest cities. Crucial to this renewal has been the return of larger transactions.”
In a column published today, The Lawyer reports that “commercial property lawyers are finally finding they have something to celebrate. Whichever recruiters you ask, the message is the same: the commercial property job market is back.” They add that “According to Kristi Edwards, partner at Edwards Gibson, “If we are comparing demand in the first six months of 2012, across all commercial property related disciplines, to the first six months of 2013, we’ve seen new vacancies rise by almost 50 per cent, with a marked increase in the past two months.”
Research released recently by Jones Lang LaSalle confirms that economic recovery in London continues to gather momentum, with businesses increasingly prepared to invest for future growth.
Take-up of office space in the City of London soared to 1.95 million sq ft in Q2, from 1.1 million in Q1, an increase of 82%. This made Q2 the strongest quarter since Q1 2010. In the year-to-date, occupiers have taken up 3.0 million sq ft of office space in the City, the highest level of activity since 2007.
Dan Burn, Director of Office Agency at Jones Lang LaSalle said: “The strong Q2 figures were driven by a number of significant deals, which demonstrates the growing confidence in the occupier market. In addition to the continuing erosion of current supply, which will drive competition amongst occupiers to secure the best space, the top four deals of the quarter were all pre-lets or pre-completion lettings which is hugely encouraging."