Demand for office space in the UK regional office markets has remained strong at the outset of 2016 despite uncertainties surrounding a potential Brexit. A total of 1,381,350 sq ft of office space was taken in the ‘Big 6’ regional cities in Q1, marginally below the final quarter performance of 2015 but 27% higher than the five quarterly average.

The leading cities in terms of year-to-date take-up are Birmingham, Edinburgh and Glasgow, with total volumes of around the 285,000 sq ft mark in each of these three cities. All of these markets have substantially outperformed their 5 year quarterly average and have each supported a strong level of pre-letting activity. In the case of Glasgow, the Q1 volume is twice the quarterly average. The strong start in this market is the result of Morgan Stanley signing a large pre-let for 154,814 sq ft at the first phase of Bothwell Exchange.

Bristol, with a first quarter take-up total of 195,502 sq ft acquired for occupation, has also outperformed its quarterly average (by 42%), albeit at a lower volume than the leading three. Take-up volumes were bolstered in this market by EDF Energy’s acquisition of 81,202 sq ft of Grade A office floorspace at Bridgewater House, Finzels Reach, in preparation for the forthcoming development of Hinckley Point C power station.