Office occupational take-up in St Helier reached a record high in 2018, with around 250,000 sq ft of stock being let, according to recent research by D2 Real Estate.
Given this increase, the total office vacancy rate has fallen significantly and is now below the historic average.
The conversion of vacant obsolete office stock to alternative uses has also played a significant part in the falling vacancy rate. In the prime market, there is now little space left to let, and the majority of space in buildings under construction is pre-let, so the short-term supply chain is thin.
D2 Real Estate Managing Director Phil Dawes commented: “The falling vacancy rate through increased take-up and conversion of obsolete stock to alternative uses is extremely positive. It demonstrates that landlords are being proactive rather than just sitting on obsolete stock with little prospect of getting it let."
At the same time, the quality of the remaining stock is increasing, reports D2. Until recently, around 5% of the stock was rated under BREEAM, the construction industry standard for sustainable buildings, but this has risen to 20% of total stock, following developments such as IFC and Gaspé House.
• The full report is available to read here