Savills’ ‘Spotlight: Office Refurbishments in UK Regional Cities’ report has predicted that the difference between the rents for Grade-A and refurbished offices (£27 and £30 per sq ft, respectively) is likely to decrease significantly in 2018.
Almost two-fifths (38%) of the total speculative office space in UK regional cities over the next three years will be refurbishments.
Savills believes that landlords are likely to carry out ‘refresher’ works on offices already refurbished within the last seven to eight years to ensure they meet the desired quality standards.
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The real estate adviser has seen a ‘new generation’ of prime office refurbishments in Leeds, including the Canal & River Trust’s 9 Bond Court and the £7m refurbishment of CBRE GI’s 7 Park Row.
The 7 Park Row development features the creation of a double-height reception, floor-to-ceiling windows, basement gym and electric car charging points.
Paddy Carter, office agency director at Savills Leeds, said: “With demand for high-quality office space soon to outweigh supply in Leeds, top-quality refurbished stock continues to play a vital role.
“It also helps to satisfy occupier demand for non-traditional office space, such as the smaller, creative-style floor plates available at 7 Park Row.”