Business park take-up at five-year high says GVA

TAKE-UP for business parks has reached the highest point in five years, according to GVA, the property adviser.

Chris Cheap, director and head of offices in the North West at GVA, comments: “Take-up is largely being fuelled by demand from high growth sectors attracted to business parks due to their national and international connectivity.

“Deals are being encouraged by a very flexible approach from most landlords with very flexible lease terms.

“For a sector that looked oversold, good demand levels are now fuelling the beginnings of investor interest.”

The Business Parks report states office take-up in the last six months of 2012 totalled 1.91m sq ft. in line with the five-year six-monthly average.

Business park activity was down compared to the previous six months however overall take-up in 2012 reached the highest point in five years. 2013 has so far continued to demonstrate a business park market comeback.

Activity was and still is strongest and above average in the South East, Midlands and the North West while activity in Scotland, the South West and North East were below average.

Mr Cheap added: “The region’s major business parks have seen a reasonable level of activity with the likes of Your Housing signing a pre-let at Birchwood Park in Warrington and Balfour Beatty going under offer at the former Nike building at Cheadle Royal, both are in excess of 30,000 sq. ft.

“These larger transactions are underpinned by a healthy number of smaller ‘deals’ and an increasing level of freehold demand.”