Norwich – overall demand at highest in years
Positive signs for the Norwich market as overall demand is at its highest in several years due to a number of larger requirements coming to the market in H2 according to the new research from Bidwells, the uks leading property consultancy.
Projection for annualised growth reflects the fact that GDP has grown for the last two consecutive quarters (q1 0.3% and q2 0.7%) This quarter on quarter growth will provide businesses and consumers with the confidence needed to boost the economy. Certain locations are stronger than others but there is hope that with the ripple affect these will soon see the benefit.
The report highlights a growing regional trend amongst major corporates – the rise of the owner occupiers which “build for purpose” for example AstraZeneca’s decision to build its 750,000 sq ft head quarters at Cambridge Biomedical campus and Amlim Insurance with their 85,000 sq ft headquarters in Chelmsford in order to address the issue of the shortage of development in recent years.
The industrial market was slow during 2012 with take up falling well below the annual average in the Eastern region. 2013 is looking healthier due to large pre-lets pushing take up to within 12% of the overall total in 2012. The 625,000 sq ft pre-let to John Lewis at Magna Park in Milton Keynes has boosted activity.
A lack of new development is bringing forward refurbishment opportunities with a number of new refurbished buildings having attracted tenants over the last 12 months. Grade A stock has reduced further representing 4~% of overall availability in the industrial sector and 12% for office.
William Jones, Bidwells ” We have seen a recovery in rentals with prime rents in Norwich increase to £16.00 per sq ft, this is on the back of the largest deal in H1 – the 7,567 sq ft letting to PwC at 3 St James Court”