GVA’s latest quarterly report on the regional city centre and out of town office markets shows a “reasonable level of take-up”.
The Big Nine report shows that take-up in Manchester and Liverpool has totalled 164,179 sq ft, which is similar to the three-year quarterly average.
It says a two-tier market is apparent in most cities.
With little development, grade A supply continues to tighten (enabling headline rents to stay firm), while secondary property remains in plentiful supply, thereby weakening average rental growth.
In terms of Grade A supply, each city will reach a tipping point when supply is less than the annual take-up, GVA says.
It estimates that Bristol will be the first city to reach this point.
