Offices are proving to be attractive property investment opportunities, after performing well throughout 2012. The UK market has experienced a strong year, with property take-up across the country remaining buoyant.
Despite an eight per cent fall on second quarter figures in quarter three, central London has enjoyed four consecutive quarters of increases, according to CBRE. Total transactions in Leeds could potentially reach the highest level since 2008 this year, with total take up for 2012 now standing at 344,384 sq ft.
Glasgow is another city that has registered an increase in office take up and is well placed to exceed last year. Thus far, 309,734 sq ft has been recorded, which is 14 per cent more than the total at this time in 2011. Office supply has risen in the third quarter, as space was released in the second hand market, adding three per cent to total availability.
However, there are areas of the country that haven't enjoyed such a prosperous year in the property market. Bristol city centre had a take up of 113,063 sq ft in the third quarter of 2012, which is half the ten-year annual average, despite being in line with the take-up levels experienced over the previous three years. Nevertheless, the business services sector has been active in Bristol, accounting for 40 per cent of all floor space exchanged so far this year.
Britain hasn't been the only European country to enjoy positive office performance in 2012 either, with year-end take ups in the German markets of Berlin, Munich, Frankfurt, Hamburg, Cologne and Dusseldorf predicted to reach more than 2.9 million sq m. This exceeds the ten-year average of 2.76 million sq m. Savills claims this is the result of a rise in the number of large office lettings due for completion in the final quarter of the year.
Robert Kellershohn, managing director of office agency at Savills Germany, commented: "Overall the office sector is strong in Germany's key markets. The volume of new office completions is at its lowest level for the last five years with 670,000 sq m coming on to the market in 2012, the majority of which has been pre-let. This has resulted in a fall in vacancy rates across the board and stable prime rents."
- Tuesday 06 November 2012