Occupational demand during H1 was the second most active start to the year in the last ten years. During Q2 the out-of town market performed particularly well, 44% above the ten year quarterly average and city centre activity was boosted by activity in Glasgow and Manchester.
As expected, strong co-working demand continues and amounted to 278,000 sq ft over the quarter, 16% of deals over 5,000 sq ft. There was also strong activity from the education, financial services and computing and software sectors.
This combination of healthy demand and tight supply continues to put pressure on headline rents which have increased by 5.8% over the last 12 months.