With the UK construction industry making a marked return to growth towards the end of 2013, the spotlight is now fixed firmly on the commercial sector as the main driver of recovery reports Glenigan, provider of UK construction project sales leads, market analysis, forecasting, and company intelligence.
This month’s Glenigan Index found that activity in the office sector has continued to rise at an increasing pace, with the value of projects starting on site during the three months to January 63% higher than a year ago.
“The office sector continues to go from strength to strength,” says Glenigan Economics Director Allan Wilén.“We expect to see further progress during the course of 2014.”
The improved sentiment displayed by companies willing to invest money in new or refurbished premises is a true indication that the economy is picking up.
Picture left courtesy of Glenigan:
Although the most recent London Office Crane Survey predicted the capital will see construction activity hit a 10-year high in 2014, with over 6.6 million sq ft of commercial office space to be delivered, commercial agents have reported that the market is becoming less London-centric, with large companies choosing to relocate to, or within, other cities in the UK such as Manchester, Leeds, Birmingham and Edinburgh.
A prime example of this is professional services firm KPMG, which is due to move into Muse Developments Sovereign Square in Leeds at the end of 2015 (Glenigan Movers Project ID: 184157, Glenigan Project ID: 11156660). Barclays Banking Group is also consolidating operations in Manchester into 4 Piccadilly in 2015 (Glenigan Movers Project ID: 188775, Glenigan Project ID: 13407666).
However, these moves aside, market surveys still predict an emphasis on refurbishments in 2014 and 2015, with construction of new office space greatly picking up by 2016 and 2017.
Author: Clare Murgatroyd – Glenigan office sector expert
Source: Glenigan