Offices & Labs Databook Norfolk & Suffolk - January 2024

Last year marked a further phase in the recovery of the Norwich office market following the pandemic. Availability fell to 6.3% at the end of 2023 from a peak of 8.0% at end-2021 and rents on prime offices rose, after stagnating for several years. The improvement reflects strong demand for offices <5,000 sq ft, a lack of new development and the conversion of older offices to residential and other uses.   

Prime office yields in Norwich rose to 10.5% at the end of 2023.  We believe that provides an attractive entry point for investors given good prospects for prime rental growth and given 10 year government bond yields at 4%.