DTZ

This report considers the distribution of office property by grade (A,B,C) of office floorspace across the UK. It does this by detailed examination of the Reading, Birmingham and City of London office markets, and extending this analysis to the rest of the country. It finds that nearly 70% of total UK office stock is poor quality secondary floorspace, but that contrary to popular belief, availability of this grade C office space is only 3.5%, much lower than for grades A and B. Despite this, the report expects grade C availability to increase in regional locations in future, as tenants move to class B and A space following lease events. As this happens, we project there to be little appetite for redevelopment in regional markets, creating a problem in terms of recycling unwanted stock.