• Occupier demand has been relatively subdued in 2018 after steady take-up levels in 2017 with just over 150,000 sq ft transacted. Falling take-up in the market can be attributed to the lack of supply available in the market. The majority of occupier demand in Norwich has recently come from local occupiers who are leasing sub 5,000 sq ft.

• Supply has fallen in consecutive years and currently stands at just below 280,000 sq ft. The implementation of permitted development rights has significantly affected the Norwich office market. It is estimated that over 700,000 sq ft has been converted to residential or other uses. This has resulted in a lack of choice for occupiers. This was highlighted by the recent sale of Sentinel House which comprises 103,000 sq ft to residential developers.

• Supply constraints in the town centre have been exacerbated by the continuing erosion of office stock from permitted development rights, this has meant that out of town space is often the only option for occupiers with larger requirements.

• Rental levels have increased from the continual falling in supply and currently stand at £16.50 per sq ft and there is potential for headline rents to grow.

• There is currently no development taking place in the market. Whilst the rents achievable will not support new development, refurbishments are viable and would be attractive to occupiers in the market.

• Savills expect that prime rents in Norwich could increase close to £20.00 per sq ft by 2020.

• Despite consolidation by a number of larger corporate occupiers in the last few years, a significant number of companies remain committed to the city including Aviva, Marsh, Swiss Re Life & Health and Alan Boswell Group.

Search for a commercial property