Research by Savills suggests office take-up in Oxford reached 480,000 sq ft in 2023 – the second highest total in the last five years.
Much of the take-up, 300,000 sq ft, was office space associated with laboratory space, which is experiencing unprecedented levels of demand.
Notable transactions in 2023 included Ryze Hydrogen taking the whole of North Bailey House in central Oxford totalling 24,000 sq ft and two lettings at Oxford ARC, Building 8100 and 9400 to Trip Advisor and Miro respectively totalling 28,154 sq ft.
City centre transactions accounted for 63,144 sq ft of take-up in 2023 and Savills notes that, as a result of strong activity, new purpose-built stock that has been delivered to the market at Iversen Building, Oxford Science Park; Barton House, Abingdon Science Park and Inventa, Oxford should be easily absorbed.
There is very little stock set to be delivered until 2025 when Phase 1 Oxford North (135,000 sq ft) and New Trinity House (210,000 sq ft) on Oxford Business Park will be delivered.
Savills estimates that demand levels are at currently one million sq ft across office, laboratory, and research and development accommodation, which is supporting rental growth with new prime rents of £63.50 per sq ft being reached at North Bailey House and £90 per sq ft on laboratory space in Oxford.
Jan Losch, associate director, commercial agency, Savills Oxford, said: “Following a really good 2023 there are early signs for another strong year of take-up in 2024 combined with some good supply coming forward.
“A number of transactions have already gone through including the largest city centre office letting for a number of years with Aurora Energy taking the former city council offices on St Aldates (37,750 sq ft) (pictured) and then out of town the laboratory market continues to go well with OrganOx taking a lease assignment from Exact Sciences on Building 3500 at ARC Oxford (17,746 sq ft).”
© Thames Tap (powered by ukpropertyforums.com).
Sign up to receive our weekly free journal, The Forum here.
