‘Big Six’ cities show encouraging office take up
The UK’s ‘Big Six’ cities have indicated increasing take-up in the commercial property market
Manchester, Birmingham, Bristol, Edinburgh, Glasgow and Leeds are the proclaimed ‘Big Six’ cities outside of London and their office markets are showing signs of recovery following the downturn of 2008 and 2009. Levels of take-up activity have sustained the same levels seen in the second half of 2009. Even office markets outside of the ‘Big Six’ are improving as businesses find their feet, with rents slowly gaining confidence up and down the UK.
Take up of work space by office movers is now at 810,000 sq ft in the central business districts of the ‘Big Six’. Headline rents currently vary between £24.50 per sq ft to £28.50 per sq ft in Glasgow and Edinburgh respectively. Key office deals to have been secured in these areas include the sale of Waverley Gate in Edinburgh, the No 1. Bridewell Street deal in Bristol and the 5th and 6th Floors of Baskerville House in Birmingham’s Broad Street.
Headline rents in the city centre are greatly increased in comparison to the out-of-town office space rents, with higher levels of competition for prime location office properties. It will still be some time until the office sector is entirely out of the woods, but now is a great time to take advantage of stimulation in the commercial property market.
