The Big Nine
Quarterly review of take-up in the major regional office occupier markets in the UK.
Regional Big Nine take-up reached 2.2 million sq ft in Q3 2024, 34% higher than the previous quarter and only 4% below the 10-year average. Five of the Big Nine markets witnessed an increase in take-up, compared to the same period in 2023, indicating a growing confidence in the market. A total of 427 deals were completed in Q3 2024, which on a rolling 12-month basis was only 6% lower.
Birmingham(+46%), Cardiff(+9%), Manchester(+8%), all saw above-average take-up this quarter compared to the 10-year average. Best-in-class space remains in high demand and short supply across the Big Nine city centres, which continue to drive record levels of rental growth. Bristol and Cardiff were the only cities which saw increases to their prime rents this quarter, bringing the Big Nine average prime rental growth to 6.48%.
The Bank of England has now pivoted from fighting inflation (which at 1.7% in September is below the Bank of England’s 2.0% target) to supporting growth by cutting the Base Rate in August and November, although gilt yields ticked up again following the government’s autumn Budget.
The latest UK composite Purchasing Managers’ Index (PMI) suggests business activity has slowed slightly but remains in positive territory. October’s reading declined to 51.8, down from 52.6 in September. A reading of above 50 suggests the economy is expanding.
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