Joshua Arnold’s Post

Newcastle office take-up reached 34,517 sq ft in Q1 2024 in 11 deals, compared to 38,019 sq ft in Q1 2023 down 9.3% year-on-year. Demand however remains for best-in-class space, with Grade A offices accountable for a 75.4% share of Q1 take-up, exceeding the 71.2% share reported in 2023. Overall vacancy increased marginally in Q1 2024 to 10.7% while Grade A vacancy stands at just 2.8% of total stock, reflecting available supply of just 259,000 sq ft. The upcoming completions of the Pattern Shop, East Quay 5 and the One Trinity Gardens will provide over 140,000 sq ft of Grade A space which will likely generate stronger deal activity in the remainder of 2024. As it stands, prime rents in Newcastle have exceeded the average regional growth of 7.6%. Newcastle’s out-of-town office market has experienced a robust level of activity at 117,379 sq ft which is only down 5.6% year-on-year but 22.5% ahead of the 2023 quarterly average. Energy companies accounted for a large share of OOT take-up, including Northern Powergrid securing 29,165 sq ft at Riverside House (representing the largest deal of the quarter) and ABCA Systems taking 6,000 sq ft at Cobalt Park. The charity sector also remained a key occupier sector. BNP Paribas Real Estate #newcastleupontyne #offices Our review of the 10 top UK Regional Office Markets can be found here:- https://lnkd.in/gR-dd_md

Introducing 'The Lease Ledger' – CBRE Asia Pacific Office Investor Leasing's quarterly analysis of office markets in Australian and New Zealand CBDs. Stay updated on office vacancy rates and local market conditions in major cities. Interesting to see a two-tiered demand structure emerge, with occupiers looking for premium high-quality space, or cost-effective yet still high-quality solutions. This change is a result of a cautious market where companies are carefully reviewing expenses while prioritising quality. Please contact me to find out Q1 key trends, market stats and deals within Sydney CBD's office market. #TheLeaseLedger #CBRE #OfficeMarketAnalysis Tim Courtnall | Rachel Vincent, GAICD | Thomas Biglands | Alexandra Parker

Take-up in the London office market rose quarterly by 21% to 2.3 million sq. ft, despite leasing in the West End being 37% lower than its long-term average for the April to June quarter. According to Savills, the insurance and financial services sectors were key drivers of this, accounting for 32% of office space leased so far this year. Read more in our Commercial property market review: https://ow.ly/lFlL50TclV3

🔍Our latest Brussels Office MarketView Q3 2024 Update is live! Key insight among others: prime rents are on the rise, alongside multiple office completions. Want to learn more ? Check the full report here: https://cbre.co/40dYJes #Brussels #RealEstate #OfficeMarket

“Australia's major CBD office markets are showing early signs of recovery, with both leasing and capital markets expected to improve through 2025,” says David Cannington. Leading the way is Sydney CBD, demonstrating positive leasing demand and increased capital market activity. While Sydney sets the pace, other major office markets across Australia are at various stages of cyclical recovery. Discover more insights in our latest Investa Inside Office Market Outlook 2025 report. Download here: https://lnkd.in/eMxk6nfm

Heading into the second half of the year, office leasing activity across the country is on the rise while availability has stabilized over the last few months. As demand rises and supply remains stable, what opportunities do you see evolving for the office market for the rest of 2024? I am sure the election will have a big impact on what is next. Check out more insights in @Avison Young's recently released Q2 2024 office market report: https://lnkd.in/gtD98_f9  #CRE #AYdifference #realestate

🏢 Curious about office rent prices in London? Wondering how much you should be paying or marketing your office for? Look no further! Hubble has got you covered. We monitor pricing for over 20,000 flex and managed offices in London to bring you the most comprehensive quarterly rent guide in the market. Stay informed about each submarket's trends and make informed decisions. Check out our latest insights here - https://hubs.ly/Q02wlDqC0 #OfficeSpace #London #CommercialRealEstate #MarketInsights 📊

Interesting read shedding light on the current office market dynamics. The best/newer buildings are commanding historically higher rents due to high demand, while the rest of the market grapples with persistently high vacancy rates. #OfficeMarket #RealEstate #CommercialProperty

And here we are: UK office market posts a positive (0.3%) 3-month total return in August 2024 for the first time since August 2022. Yet another sign that the real estate cycle in Europe has turned. And as per usual, it turns first in the UK where valuations are adjusted quicker to realities in transaction markets than in continental Europe. How robust the recovery will be is a different matter. It will, as one can judge immediately from this graph, e.g. depend on the sector. It will also depend on the assets within the same sector. There are e.g. multiple office assets out there that are struggling to attract tenants. They are generating the news headlines we see about the plight of the office sector. But there are assets within the sector that are generating healthy rental growth as they attract tenants looking for offices that are able to meet their preferences - and those assets are in short supply. Seldom, if ever, have asset selection and the right asset strategy been so important. (Data source: MSCI)

Given the softness in the office occupancy market, such discounts to asking rates is perhaps not as large as might be expected. This is because landlords are holding tighter to their asking rates due to the extensive cost of tenant improvements, requiring a reasonable payback period on their investment. As always, more later...