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Swindon Office Market Review – February 2015

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Swindon Office Market Review – February 2015

As we predicted in our last update the office market in Swindon continues to gather strength, showing both increased levels of take up and rapidly reducing availability. Total take up for the local office market stood at approximately 215,000 sq ft at the close of 2014, comprising of 61 transactions, against a total of 43 transactions in 2013. This is the highest level of activity we have seen for 6 years and stands in stark contrast to the depth of the market in 2011, where take up reached only 80,000 sq ft.

This improving trend looks set to continue through 2015 with availability now having reduced to 750,000 sq ft against a peak of 1.07 M sq ft in 2011. With an increasing number of older 1970 / 1980’s town centre office properties going under offer for conversion to residential use we expect this figure to reduce by a sizeable margin by the end of 2015.

These market factors have yet to prompt developers into speculative development of new office buildings, but as rents continue on a relatively steep upward curve this stage of the property cycle moves ever closer. In light of the dwindling lack of good quality stock we are now seeing quoting and achieved rents increase by between 10-20%. In fact, quoting rents have now been pushed up to £18.50 per sq ft pax in the town centre in some instances.

When advising occupiers considering a move we are now urging them to make decisions sooner rather than later as the market is moving in favour of landlords. Unfortunately for tenants the single figure / long rent free rental agreements that we have seen over the last few years are becoming increasingly rare and essentially are now largely only available on poor quality stock. For more detailed background information please contact Bradley Forbes on (01793) 423344 or bradley@loveday.uk.com 

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