Regional office rents bottom out but government demand slips by over 10%

peter pan crocodile.jpgThe final flush of quarter two figures arrived this morning. Today, it was Jones Lang LaSalle‘s turn with its office clock which showed the majority of the regional office rents are bottoming out (you can see the clock by clicking on the continue reading link below).

Edinburgh and Leeds are the furthest behind while in the City of London and the capital’s West End it reckons rents are accelerating.

But tick, tock, like the ominous ticking of crocodile in Peter Pan, JLL’s office clock might have some wishing they could fly off to Never-Land.

Stripping out Glasgow and the Western Corridor take up is lower than quarter one as concerns over the Eurozone and at home those austerity measures continued to bite. In the six key regional centres JLL monitors outside London (namely Birmingham, Leeds, Manchester, the Western Corridor, Edinburgh and Glasgow) there were few requirements for space abouve 25, 000 sq ft. It expects deal sizes to stay small for the rest of the year.

Government demand slipped from a quarter of all activity last year to 13% in the quarter jut gone. This is something the agency warned about when it published it’s last office clock and unfortunately, that prediction seems to be finally coming true.

 

 

Q2 office clock.bmp

Related posts

Manchester and Leeds reveal Q2 figures, how do they stack up?

Cardiff 1H figures improve but lease renewals high

Public sector spending cuts may stymie regional office demand and short term recovery

JLL office clock show its time for regional rental growth

Peter Pan’s crocodile by Loren Javier from Flickr

 

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About Nadia Elghamry

Data Editor and deputy Regional Editor at Estates Gazette with more than 15 years experience in business journalism. I currently look after Property in Numbers and the month in numbers section of the magazine as well as drawing out stories from the numbers for every section of the magazine. As deputy regional features, working on the Focus features section of the magazine, hosting our receptions around the country and writing for the Focus blog.

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