2017: A year of contrasting fortunes for the UK office market
2017: A year of contrasting fortunes for the UK office market 16/02/2017 Lambert Smith Hampton's office agency network forecasts contrasting fortunes between the capital and the regions in 2017. Prime headline rents are set to rise in 20 of the 52 key UK markets over the course of the year, with a further 19 markets holding at their current level. Meanwhile, reflecting growing concerns in the capital, 12 of Central London’s 16 sub-markets are forecast to see a fall in prime headline rents.
2016 ended with a flourish in the occupational market. UK-wide office take-up in Q4 was the strongest seen in any quarter of 2016, rebounding by 29% from Q3’s level. In similar fashion, the investment market had a solid finish to a subdued 2016, characterised by institutions selling out of Central London and record overseas investment in the regions.
Despite a strong finish to 2016, the year ahead is set to be a challenging one for the Central London. In contrast, the UK regional markets are expected to show much greater resilience to the more uncertain economic environment.