Availability of offi ce space in Milton Keynes is still relatively
static, despite consistent take up, as surplus space continues to be released to the market as occupiers downsize. T e key consideration here, however, is the majority of this space continues to be poor quality, unrefurbished space, for which there is waning demand. The government’s recent announcements to widen Permitted Development Rights for the conversion of offi ce space to residential, could see some of this obsolete offi ce space removed from the market. A continued concern for the MK offi ce market and local economy
is the lack of Grade A supply with a paucity of ‘best in class’ that occupiers want. Only 17% of the current availability is Grade A, with some 30,000 square feet under off er, which will further reduce this fi gure down to around 12%. T is is in stark comparison to other South East markets, and particularly the T ames Valley, where average Grade A availability is in the region of 50%. MK remains a low-cost offi ce location, in comparison to staff
costs and real estate costs in other South East locations. Viability of new-build offi ces or major refurbishments could remain challeng- ing with a backdrop of high construction costs, the increased cost of debt and investor sentiment. We anticipate further rental growth in 2024 as investors seek to balance out these factors with occupiers continuing to gravitate towards best-in-class offi ce space. We advised on a number of major offi ce transactions in 2023
across the M1 Corridor & North M25 markets, transacting in excess of 175,000 square feet. Lambert Smith Hampton are well placed to advise both landlords and occupiers on the challenges they face with core service off erings from the MK offi ce including Offi ce Advisory, Industrial & Logistics, Building Consultancy, Lease Advisory, Valuation and Property Management.
Visit
www.lsh.co.uk to fi nd out more
7
CONSTRUCTION, LAND & DEVELOPMENT
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