13 August 2012
Total office occupancy costs remain stable across the UK
Total office occupancy costs across the UK have remained stable in the first half of 2012, according to new research by BNP Paribas Real Estate.
The report, which focuses on a high level view of rents, rates and service charges for Grade A offices across the country over the first six months of the year, highlighted that costs rose in Chiswick, by 15% to £64 per sq ft, Croydon, by 7% to £35.50 per sq ft, Hammersmith, by 5% to £53 per sq ft, Hemel Hempstead, by 3% to £33.50 per sq ft, Bracknell, by 1.5% to £34.50 per sq ft, and Edinburgh, by 1.2% to £43.50 per sq ft.
Unsurprisingly, occupancy costs remain the highest in Central London, with rates remaining stable in all locations apart from the Docklands, where rates fell to £62 per sq ft, compared to £64.50 six months ago, due to a lack on rental activity.
Dan Bayley, MD of Central London at BNP Paribas Real Estate, comments: “It is unsurprising that occupancy rates have remained fairly stable across the country, as occupiers are still looking to secure good deals within Grade A offices. A lack of quality space tends to be the main reason for the rise in rates within various locations, such as Chiswick.”
“Looking forward, new enquiries are likely to be slow during the summer months and the Olympics. However, as we draw closer to the end of the year we expect activity to pick up again slowly, as there is already a number of high profile deals in the pipeline,” concluded Bayley.
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