A new report published today has shown take-up on business parks in the North West has decreased in the first six months of the year.
Property consultants GVA Grimley's 'Business Park Review Summer 2008' stated just 128,000 sq ft of space had been let so far this year, from 182,000 sq ft, which is also below the six monthly five year average of 142, 000 sq ft.
This also reflected the national outlook, with take-up in the first six months of 2008 having decreased and showing its lowest recorded levels of six monthly take-up since 2004, with 2m sq ft let.
However, the report did not bring all doom and gloom for the North West. Despite low take-up levels, the report revealed new supply has risen to 230,000 sq ft from 182,000 sq ft six months previously, creating a 21% increase.
GVA Grimley's report also revealed in the North West:
- 75% of space currently under construction is being built speculatively
- Availability has decreased slightly to 1,173,000 sq ft, down just 2% over the last six months
- Vacancy had decreased to 20.6% from 21.6% six months ago
- Prime rents for space in south Manchester were £18.50/ sq ft, £19/ sq ft in Salford, £18.50/ sq ft in Chester and £17.50/ sq ft in Warrington
Simon Reynolds, North West head of offices at GVA Grimley, said: "We haven't seen a massive decrease in demand for business parks in 2008 and we believe this will remain unchanged, although due to build-out times, we're predicting a decrease for the next two years.
"The increase in speculative development is a warning for the future. The main issues are that take-up is down and is starting to dip below the trend line whilst at the same time construction hasn't started to fall.