Q3 Key Findings:
- Take-up has shown early signs of recovery with a total volume of 6.7m sq ft transacting during the quarter.
- The volume of space under offer has also risen, now standing at 8.5m sq ft up from 7.5m sq during Q2 2023.
- Availability has continued to increase, although our Q3 stats highlight a deceleration in the volume of stock coming to market. Availability had previously been growing by circa 4m sq ft a quart since Q2 2022.
- The volume of grey space coming to market has also slowed, with total space available by way of sub lease now standing at 7.7m sq ft.
- Investment volumes breached £2bn for the first time since the September mini budget during Q3 2022, pointing to the gradual return of investor confidence and some stability returning to the market.
- Rental growth has continued to moderate, as competitive tension eases. However, persistent pockets of under-supply are likely to maintain some upward pressure as we progress through 2024.