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UK Office Market Outlook Q4 2011

​The fourth quarter of 2011 witnessed a slight slowdown in leasing activity with annual volumes down 14% across the core UK regional office markets. Subdued demand is likely to continue into 2012, although structural lease events and a number of active requirements provide a source of optimism. Supply conditions were broadly unchanged, although we expect Grade A supply shortages to intensify over 2012. Grade B supply will remain high driving further polarisation of rents. Rents for the best quality space will hold up well, while secondary risk further falls.

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