Page 211 - Minutes of meeting

The Commercial Challenge

Demand & Supply - Office

Headline Indicators (Δ past 12 months - CoStar)

Total Office Stock

CoStar commercial property market data suggests that there has been no increase in
overall office market stock (488k sq.ft) within Barrow over the last 12 months, which
1
is echoed by the latest Cumbria Employment Sites and Premises Study (ESPS) .

1
CoStar and the ESPS show a discrepancy in office vacancy in Barrow with CoStar
suggesting the vacancy rate could be as high as 6.4% whereas the ESPS
estimates the vacancy rate to be around 3.6%. It is possible the discrepancy could
be linked to Newspaper House which is listed as vacant but is currently under offer.
The ESPS suggests that the stock of available office property provides limited
availability to meet local demand and enquiries are relatively consistent for
smaller employment space, which are hampered by supply limitations.

CoStar and the ESPS suggest office market rents are in the region of £9 - £9.50 per sq.
ft which is in line with market rents across Cumbria. There is currently no new office
stock under construction and only one lease deal was completed in the last 12
months, which was for a small area of floorspace (c. 2,000 sq. ft).

CoStar data suggests the majority of stock is between 2-3 stars, which would indicate
poor quality with the vast majority of stock being built pre-2000.

Copyright © Hatch 2018. All Rights Reserved.
Data source: CoStar, 2020; LSH, Cumbria Employment Sites & Premises Study, 2019