The Big Nine
Quarterly review of take-up in the major regional office occupier markets in the UK.
With a total of 1.92m sq ft taken-up, Q4 was a quieter than average quarter, 19% below the Q4 10-year average. It brought total 2023 take-up to 7.12m sq ft, which was down on the last two years and 17% below the 10-year annual average.
A total of 493 deals completed in Q4, which on a rolling 12-month basis was down 14% on the post-pandemic peak of 538 in Q4 2022.
With inflation more under control than in recent quarters, and the Bank of England likely having reached its peak interest rate, forecasts for growth have improved. Oxford Economics estimate that Q4’s annualised GDP growth was 0.2%, and forecast that the UK will now avoid a recession and see annualised growth gradually increase over the year. The latest ONS estimates for GDP growth showed a 0.2% decline in the three months to November 2023 compared to the three months to August.