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JLL Big 6 2018

​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Record breaking performance for the regional markets in 2017

​​​Our annual Big 6 seminar was held on Thursday 22 February at the Ham Yard Hotel in London, covering the regional office and investment market with a review of the key transactions and market trends from 2017, and our predictions for the year ahead.

The regional office market has experienced strong levels of take-up in 2017 with 5.6 million sq ft transacted. A total of 933 deals in the UK's 'Big 6' cities - Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester – a 20% increase on 2016.

The Public sector accounted for 30% of overall 2017 take-up, with six out of the top ten deals. The Flexible Working sector, which is expanding across the globe, was also very active within the Big 6 cities in 2017. Pre-letting continued to remain a major feature with over 1.5 million sq ft agreed over 22 deals, the highest on record.

Across the six cities, 1.1 million sq ft of new or refurbished space under construction is due to be delivered in 2018 with a further 910,000 sq ft expected in 2019. Good quality space is increasingly in short supply, with Grade A vacancy across the Big 6 standing at just 1.7%.

The Big 6 markets transacted a further £2.9 billion with seven deals over £100 million and an additional eight over £50 million, enforcing a strong year for the regional markets and appetite for larger lot sizes.

Overseas investors continued to be active, accounting for 53% of transactions in 2017, aided by the weakening of sterling over other major foreign currencies. Overseas investors have a strong appetite for the larger lot sizes, accounting for 67% of volumes traded over £50 million.

Looking ahead to 2018, the trend of foreign investment into the regional markets is expected to continue. This demand will continue to focus on prime assets with investors seeking steady and predictable income streams. The availability of suitable product will remain thin with motivated sellers in short supply. Demand for 'risk on' assets will remain tempered against the backdrop of Brexit negotiations.

If you would like to hear more about the themes discussed, please contact one of our speakers.


Jon.Neale-200.jpg ​​
Jon Neale
Head of UK Research

Chris Mulcahy
Director, Manchester Office Agency

Mike Buchan
Director, Glasgow Office Agency

Kayma Liburd
Associate Director, Tenant Representation


Angus Minford
Director, National Capital Markets


James Porteous
Director, National Capital Markets

 Video interviews