A CAUTIOUSLY OPTIMISTIC OUTLOOK: REDUCED SPECULATIVE DEVELOPMENT WILL UNDERPIN RENTS AND INVESTMENT VOLUMES SHOULD INCREASE
Occupier take-up was 11.9m sq ft in Q2 – up 14% on Q1 and 19% on Q2 2023. Short-term comparisons are favourable but over the longer-term demand is effectively back to the pre-pandemic average. The overall rate of availability increased for the sixth consecutive quarter to 6.7% in Q2 but remains relatively low by historic standards. Speculative development continued at its much-reduced rate in Q2 which, along with some flexibility in lease terms, will help underpin prime rents.
