London and Leeds lead the way in UK commercial property market
Published on
15/07/2011 09:58:24
Recent research from professional financial and commercial
organisations indicates London and Leeds are the nation's most
stable and thriving areas for commercial property in 2011.
Financial and professional services firm Jones Lang LaSalle
found that the highest rent found in an individual town or city has
stabilised across over half the market, with Leeds said to be top
of the pile with stabilised rents since March 2010.
Jeff Pearey, head of Jones Lang LaSalle's Leeds office, added:
"Leeds retains its competitive edge nationally with a good range of
Grade A stock still on offer and rents that compare favourably with
the likes of Manchester, Glasgow and Edinburgh.
"Enquiry levels for office space have improved over the first
half of 2011 and we anticipate stronger market activity this year
in comparison to 2010. This bodes well for anyone contemplating
launching an office refurbishment or indeed planning ahead for more
substantial developments in the city."
Meanwhile additional research by commercial brokers Colliers
International discovered that growing competition for Grade A
London office space is almost certain to improve the take-up rate
within the capital.
Access to Grade A office space in Central London has fallen to
17 per cent and consequently the take-up of Grade A premises is
said to have reached its peak due to a lack of new commercial
development in the City. The lack of available high-quality
workspace is also likely to drive higher rents in the coming
months.
Mike MacKeith, head of central London offices at Colliers
International, said: "Competition for Grade A space will remain the
key driver of rental uplift during the remainder of 2011.
"Despite that, overall 2011 take-up is likely to be below
average in both the City and West End markets.
"Absorption appears to have peaked in the City and is close to
peaking in the West End. Nevertheless, we expect to see increased
absorption of good quality second hand stock as Grade A product
becomes scarcer."