London’s rents have taken a hit in recent years as occupiers look further afield for office space
In a new series exploring the depth of market insights among tech providers, Coyote shows what its data can tell us about office rents since the start of the pandemic.
Coyote’s software helps real estate teams store, manage and analyse any data relevant to them (such as leases, occupancy and deal pipeline). By extension, it gives Coyote itself a deeper understanding of market trends.
The company collated 3,936 leases from 642 assets across the UK office market, revealing a sharp divergence among different regions.
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Rents in London fell 7.5% between 2020 and 2021, while in the North West – buoyed by Manchester’s 21.7% growth – they rose 19.9%. The East Midlands was the second strongest market, recording a 15.2% rise.
These figures mirror longer-term trends across the country. Between 2016-2021, rental growth was strongest in North West at 16.7%, followed by Yorkshire and the Humber (+12%) and the East Midlands (+11.3%).
David Oates, chief revenue officer at Coyote, said: “Over the past five years, the North in particular has seen huge growth in rental values, driven in part by significant investment into transport infrastructure, digital infrastructure and new schemes in this part of the UK.”
‘Oxygen for real estate’
Oates added that businesses have sought out alternatives to London and the wider region, particularly post-pandemic, while others have restructured their office footprint as they transition to hybrid working.
Touching on the value of the data, Oates said: “Having a live picture of what is happening from city to city and region to region allows investors to spot opportunity and stay nimble. Access to data like this is oxygen for real estate investors.”
Go to Publisher: PlaceTech
Author: Karl Tomusk