THE GVA Spring 2011 Business Parks Review offers a “mixed tale” of recovery.

In the North West, occupier activity slowed, with take-up remaining below the five-year average.

Development activity was recorded as being above average, while availability continues its downward trend after two years without any speculative development in the region.

According to GVA, North West take-up levels were disappointing, with just 138,000 sq ft let across the region’s business parks in the second half of 2010.

Prime headline rents remained unchanged in the region and were stable in comparison to the rest of the UK. Chester out-of-town rents stuck at £19 per sq ft, South Manchester and the airport at £18 per sq ft and Warrington/Birchwood at £17.50 per sq ft.

Underlying incentives have become increasingly generous, however, with 36 months rent-free on a 10-year lease now typical.

Development activity was strong, with 337,000 sq ft of space under construction reported but this total was made up of two public sector schemes – the new Greater Manchester Police HQ and the Home Office building in Warrington. No new speculative starts or pre-lets were recorded by the survey.

The amount of available floorspace fell 20% throughout 2010 in the North West, to 893,000 sq ft.