Dramatic increase in demand gives Eastern Region genuine hope for recovery

Full details on Databook 19

Following the publication of Bidwells latest research, Patrick McMahon, Bidwells Managing Partner said: “There are some very promising signs that the recovery may be on its way in the Eastern Region.  Our latest research shows that occupier demand reached its low point in mid 2009 but has recovered strongly since that point.  The demand for floor space in the office sector has increased by 36% since the middle of last year and industrial demand is 21% higher.”

Bidwells latest Data Book research shows that office and industrial markets in the eastern region have begun to show signs of stabilising after twelve months of falling rents and weakening tenant demand.  Availability across all office markets has risen to 15.9% of total built stock and take up levels have fallen to their lowest levels in eight years as occupiers have tightened their belts in the face of the fall in economic activity.  The industrial sector has followed a similar pattern, with availability rising to 9.4% and take up level at a 10 year low.

Over the past twelve months prime rents across the main office and industrial markets have fallen by -5.8% and -8.5% respectively and there may be further falls in rental values to come but there are signs that occupational demand is strengthening.

Some markets are still experiencing a difficult time but McMahon adds, “Our core markets in Cambridge and Milton Keynes have seen the most significant improvement and if the trend continues we would expect rental values to stabilise in the latter stages of 2010.”         



For further information please contact Saul Westen at Bidwells on 020 7493 3043 or email.