Demand shrinks for office space

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The take-up of office space in Truro and the surrounding area is at its lowest level for five years, according to the latest Market Monitor review from commercial property specialist Alder King.

The report says that take-up of office accommodation in 2012 fell to 40,000 sq ft. However, the take-up of industrial space increased by more than 30% to 80,000 sq ft.

The Market Monitor also reveals a significant increase in the value of investment transactions in Cornwall, with a total of £14.6 million of transactions in 2012, mostly in the retail sector. Truro bucks a downward regional trend which saw the value of transactions in the south west drop to circa £555 million, half the average annual figure of the past four years.

The city’s retail market continues to hold its own, with vacancy rates in central Truro well below the national average and the availability of large prime space remaining limited.

Tom Duncan, head of agency at Alder King in Truro, said: “A number of positive trends have emerged over the past year which will impact across the market in 2013. With the increase in supply, we anticipate improved incentives and shorter lease terms being agreed.”