GVA – "LACK OF ‘GRADE A’ STOCK IN SOUTH MANCHESTER"

While take up across UK business parks continued to bounce back across the second half of 2013, UK property and management consultancy GVA have reported a shortage of grade A stock in South Manchester and Aberdeen, “meaning both are ripe for new development”; nationally availability is beginning to fall by 1.7% but still remains historically high.

Carl Potter, Senior Director and national head of offices at GVA, said:

“Though availability remains good in many regions, we are beginning to identify parts of the country where the existing good quality space is all but used up.”

Vacancy rates have also fallen across the North West from post-recession 20.7% to 17.2% and most significantly in the South East (17.2% to 14.6%) and the Midlands (16.5% to 12.2%). It remains highest in Scotland (38.1%).

Take up across the UK is coming in at 23% above the five-year average and the second highest level since 2007, reports GVA in research revealed exclusively by CoStar News. UK business park office take-up during the second half of 2013 totalled 2.4m sq ft, which is 23% above the five-year six-monthly average of 1.9m sq ft.

GVA’s latest bi-annual Business parks review indicates that the positive activity witnessed across the first half of 2013 continued and in many parts of the UK gathered strength, and that the period experienced the second highest level of activity since 2007.

UK business park office take-up during the second half of 2013 totalled 2.4m sq ft, which is 23% above the five-year six-monthly average of 1.9m sq ft.

Activity was strongest in the South West, Wales and Scotland, where take-up was 50% above the five-year average. Owing to the availability of existing business park space in most parts of the UK, construction remains relatively subdued at 875,000 sq ft.

Carl Potter continued:

“It is very encouraging to see that the take-up in business parks has continued to rebound. It is fair to say that business parks still present a viable and attractive option to forward-thinking organisations. Occupiers such as Astra Zeneca, HSBC and Honda have all taken on major deals at existing business parks.”