Thames Valley upturn for 2012 after “solid” 2011 – JLL
The market for available office space in the Thames Valley region last year recorded its best annual take-up since 2007, says JLL. After an exceptionally active third quarter, take-up for 2010 reached 1.9m sq ft, which is 16% above the five-year annual average.
Supply of office space in the Thames Valley area has been reducing since a mid-year peak in 2010. There was 7.5m sq ft of office space available in the region at the end of last year, equating to a vacancy rate of 12.2%. Current supply equates to 4.5 years’ take-up, with Grade A supply equating to 2.5 years.
The amount of space under offer at the end of Q4 2010 was 162,000 sq ft – “the lowest level over the course of the year and an indication that take-up levels will be more subdued in early 2011,” JLL notes.
“We expect 2012 to be the start of a more sustainable upturn in the occupational market,” JLL says, following what it forecasts to be a “solid if unspectacular year” this year. Developer confidence is returning and a number of large, active requirements are circulating in the Thames Valley region, the firm points out.
JLL notes that speculative development has returned to the area, with BAM Properties starting at Chiswick Green, a scheme due to be completed early in 2012. It also expects Rockspring to start in Uxbridge during the first quarter of this year. In general, the firm expects development activity to be focused on the West London suburbs, but it notes that “good opportunities remain thin on the ground”.
