{"id":5551,"date":"2022-04-26T10:39:15","date_gmt":"2022-04-26T09:39:15","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/04\/26\/commercial-property-market-review-april-2022\/"},"modified":"2022-04-26T14:05:33","modified_gmt":"2022-04-26T13:05:33","slug":"commercial-property-market-review-april-2022","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/04\/26\/commercial-property-market-review-april-2022\/","title":{"rendered":"Commercial Property Market Review \u2013 April 2022"},"content":{"rendered":"
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Industrial space in high demand in Q1<\/strong><\/p>\n<\/div>\n\n

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Elevated occupier demand has driven strong UK industrials\nand logistics take-up in Q1 2022, according to the latest research.<\/strong><\/p>\n<\/div>\n\n

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The take-up of 10.43 million sq. ft in the first quarter is double\nthe total in the same period last year, CBRE noted. Q1 2022 saw take-up more\nthan 36% above the long-term quarterly average, according to Savills.<\/p>\n<\/div>\n\n

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Such strong demand is keeping supply critically low, Savills\ncautioned, with the current vacancy rate sitting at 3.12%. However, its\nanalysts also pointed to the 21.1 million sq. ft of speculative warehouse space\nunder construction, due for delivery in 2022 or 2023, as a sign for optimism.<\/p>\n<\/div>\n\n

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Richard Sullivan of Savills commented, \u201cThere are a number\nof significant macro events currently impacting economies globally which are once\nagain placing pressure on businesses to future proof their supply chain. With\nsome predicting online activity could account for as much as 50% of retail\nspend, this is only set to increase demand going forward.\u201d<\/em><\/p>\n<\/div>\n\n

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Optimism returns to Aberdeen office market <\/strong><\/p>\n<\/div>\n\n

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Office take-up in Aberdeen has almost reached the total\nfigure for 2021 in Q1 2022 alone, according to analysis from Knight Frank.<\/strong><\/p>\n<\/div>\n\n

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The commercial property consultancy found that 195,905 sq.\nft of office space was transacted in The Granite City between January and March\n2022, compared to around 197,194 sq. ft in the same period last year. <\/p>\n<\/div>\n\n

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Notable deals during the first quarter saw Shell complete on\na 100,000 sq. ft let at the Silver Fin Building and The North Sea Transition\nAuthority – formerly the Oil and Gas Authority \u2013 take up  around 18,000 sq. ft at 1 Marischal Square.<\/p>\n<\/div>\n\n

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Matt Park, Partner at Knight Frank\nAberdeen, said \u201cAt the beginning of the year, we expected to exceed\n200,000 sq. ft of take-up by the end of June, but we are very close to reaching\nthat figure in just three months.\u201d<\/em><\/p>\n<\/div>\n\n

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Prime office space still hotly sought after<\/strong><\/p>\n<\/div>\n\n

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February take-up in London\u2019s City office sector climbed\nto 546,166 sq. ft across 18 deals, according to Savills, larger than the\ncombined value for January and February 2021.<\/strong><\/p>\n<\/div>\n\n

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Prime office space remains a key driver for occupiers, with\n94% of the year-to-date 834,221 sq. ft take-up classed as Grade A quality.\nMoreover, 69% of this Grade A space was recently comprehensively refurbished or\ndeveloped.<\/p>\n<\/div>\n\n

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A noteworthy transaction was Aviva\u2019s acquisition of the\nfirst to fourth floor at 80 Fenchurch Street, EC3. The insurer acquired 78,276\nsq. ft on a ten-year term at \u00a367.50\/sq. ft with 27 months rent-free.<\/p>\n<\/div>\n\n

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In total, the Insurance & Financial Services sector has accounted for 24% of year-to-date take-up, behind only the Professional Services sector (37%).<\/p>\n<\/div>\n\n

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Serviced offices and tech shine post-pandemic<\/strong><\/p>\n<\/div>\n\n

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The post-pandemic office landscape has bolstered two\nalready established trends; the value of serviced offices and growth in the tech\nsector.<\/strong><\/p>\n<\/div>\n\n

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The UK\u2019s largest serviced office providers\u2019 property portfolios\nhave fallen from \u00a325.7bn to \u00a324.3bn in the last year, according to Boodle\nHatfield, reversing the past five years\u2019 relentless 300% growth. <\/p>\n<\/div>\n\n

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Experts, however, expect big office occupiers to be drawn\nback to serviced offices. \u201cThe serviced office sector is leaving the\npandemic in a healthy state with a consensus that a hybrid working model will\nsee the sector continue to grow\u201d <\/em>commented David Rawlence of Boodle Hatfield.<\/p>\n<\/div>\n\n

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The tech sector, meanwhile, continues to outperform the\noverall economy. Last year, UK tech investment recorded its best year since\n2014.<\/p>\n<\/div>\n\n

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Bristol, ranked third in the UK by Tech Nation\u2019s 2021 report,\nprovides an interesting case study. The city is gaining a reputation as one of\nthe UK\u2019s fastest-growing tech cities, with the sector accounting for 30% of\noffice take-up in the last five years, according to Savills.<\/p>\n<\/div>\n\n

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With Bristol\u2019s tech sector maturing, deal sizes have already\nincreased; the average letting is now 6,318 sq. ft, up 41% on 2017\u2019s average. Accordingly,\ntop rents in the sector have grown by 38% between 2016 and 2021.<\/p>\n<\/div>\n\n

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It is important to take professional advice before making any\ndecision relating to your personal finances. Information within this document\nis based on our current understanding and can be subject to change without\nnotice and the accuracy and completeness of the information cannot be\nguaranteed. It does not provide individual tailored investment advice and is\nfor guidance only. Some rules may vary in different parts of the UK. We cannot\nassume legal liability for any errors or omissions it might contain. Levels and\nbases of, and reliefs from, taxation are those currently applying or proposed\nand are subject to change; their value depends on the individual circumstances\nof the investor. No part of this document may be reproduced in any manner\nwithout prior permission.<\/em><\/strong><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

Industrial space in high demand in Q1 Elevated occupier demand has driven strong UK industrials and logistics take-up in Q1 2022, according to the latest research. The take-up of 10.43 million sq. ft in the first quarter is double the total in the same period last year, CBRE noted. Q1 2022 saw take-up more than […]<\/p>\n","protected":false},"author":12,"featured_media":5553,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,36],"tags":[],"hd_content_source":[116],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/5551"}],"collection":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/comments?post=5551"}],"version-history":[{"count":1,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/5551\/revisions"}],"predecessor-version":[{"id":5555,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/5551\/revisions\/5555"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/5553"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=5551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=5551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=5551"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=5551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}