Potter spells out thoughts on sentiment

SENTIMENT in the regional office markets has declined markedly since the summer according to property consultancy’s GVA’s latest edition of The Big Nine – its quarterly regional office market review.

Consequently larger requirements have been slow moving, as companies have delayed decisions and take-up in a number of cities has been dominated by small to medium sized transactions.

However, Carl Potter, the firm’s director and head of national offices, based in GVA’s Birmingham office, argues low sentiment doesn’t reflect reality.

“Take-up is only 4% down on the quarterly averages, so the office market actually remains relatively healthy. This poor sentiment doesn’t actually mirror the reality of what’s happening in the market,” he said.

“A lack of confidence in what remains a steady market is accentuating a state of continued unease. The reality is that, despite slow progress with deals across the board, transactions are not letting up.

“Nevertheless a number of cities are in the position where take-up going forward is going to be reduced as a consequence of the lack of future supply.

“This is already feeding through to headline rent increases in Manchester, Cardiff and Leeds. However, in Birmingham, as a consequence of significant development completions during 2008/9, the city does have good opportunities to accommodate footloose companies into high quality accommodation.”