Permanent withdrawals of office stock across the major East Coast markets will accelerate through 2015, increasing 41% above 2014 levels. However the peak is expected to be in 2016 when 188,000m² of office stock is projected to be withdrawn across the markets analysed by Knight Frank Research.
Overwhelmingly the major demand driver for this change of use of office stock has been the upswing in residential investment demand and the associated clamour for development sites. Hotel development, student accommodation and also the creation of development sites for new office projects have also been a factor in a number of withdrawals. Across the three cities, 47% of the stock withdrawn is for a change of use to residential with a further 26% slated for a likely residential/hotel development and 7% with pure hotel proposals.
Source : Knight Frank