5 March 2013
Senior property analysts have predicted a surge in office development outside London.
Speaking at Jones Lang LaSalle's seminar on real estate markets in Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester, Jeremy Richards, director of the group's National Office Agency, said: “Consumer income is reviving and, as a result, regional office employment is expected to pick up from 2014 onwards, leading to an increase in demand for office space.'
He added: “We are beginning to see more movement in the way of development activity, with a number of schemes already under construction and a number due to start on site in 2013.
“Our requirements data is also positive. Looking at just the top five requirements in each of the 'big six' markets, there is a total of 1.7 million sq ft of active enquiries, with an average requirement size of around 60,000 sq ft.”
Mark Wilson, director of capital markets at the property consultancy, said: “Overseas investors priced out of London and the more expensive European cities are likely to find favour in good-quality real estate in the regions, which offers quality covenants in a favourable currency environment.”