Office Market Pulse - M1 Corridor
21st November, 2013
Robust take-up across the M1 Corridor
- After successive years of decline, Q3 saw office take-up stabilise in Luton, Milton Keynes and Northampton.
- Take-up for Northampton was 37,700 sq ft. With the year-to-date total now at 102,656 sq ft, take-up is already equal to 2012’s total.
- Milton Keynes' take-up was 41,112 sq ft, taking total take-up year-to-date to 92,389 sq ft. With a further 117,000 sq ft currently under offer, total take-up should be in line with 2012 (163,600 sq ft).
- Luton office take-up reached 36,770 sq ft in Q3. With year-to-date take-up now standing at 63,700 sq ft and a further 44,179 sq ft under offer, the outlook for the office market is fast improving, after hitting a five-year low in 2012.
Region’s supply remains static
- Occupiers are trading up into better quality space, so supply along the M1 Corridor has remained largely static, despite robust take-up.
- The shortage of good quality stock across the region continues to hamper the office market, and with a swelling in both take-up and demand, this situation is only likely to worsen in the short-term.
Early signs of improved demand
- Across the M1 Corridor markets, demand registered during the course of Q3 2013 peaked against five-year averages; Luton 136%, Milton Keynes 167% and Northampton 114%.
- It is perhaps too early to suggest a wholesale change in fortunes for the office markets, but these results are certainly a step in the right direction.
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