OCCUPIERS in the UK benefited from an 8% fall in average occupancy costs in 2009, according to DTZ’s latest global occupancy costs survey.

The greatest cost savings in the UK were seen in Bristol, London City, London West End and Glasgow, where occupancy costs fell by more than the UK average, at -13%, -12%, -11% and -11% respectively.

Cardiff was the only market to see cost increases, with occupancy costs rising by 2%.

DTZ’s survey is a guide to total office occupancy costs across 116 business districts in 47 countries and territories. It assesses the main components of occupancy costs in major office markets across the globe, ranking each location based on annual costs per workstation.

Tony Hordon, of DTZ in Newcastle, said: At a local level, and in particular Newcastle city centre and Gateshead Quays, we have noticed a price correction, although not to the extent perhaps noticed in other cities.

“Traditionally, the core has never experienced a large overhang of prime Grade A space, with very healthy demand supply dynamics.

“It has been these dynamics which have supported our rental levels and growth over the years and should continue to support the rental levels as we approach recovery, with very little stock available in the medium term.

“ In addition, at rental headlines of £22 per sq ft pre-recession, this level still represents very good value for money when compared with our neighbouring cities of Leeds and Manchester, and indeed beyond.”

Despite occupancy costs falling in all the UK cities the DTZ survey covers, with the exception of Cardiff, London’s West End reclaimed its title as the most expensive office location globally, at £13,020 per employee workstation.

London City was ranked as the second most expensive city in the UK, at £7,760 per workstation, followed by Edinburgh, at £4,890 per workstation, and Birmingham, at £4,800. Cardiff was the least expensive city in the UK, at £3,250 per workstation.

Looking ahead, on average, occupancy costs per workstation in the UK are forecast to increase by 1.6% between 2009 and 2013.

London City is forecast to see the strongest growth over the forecast period, with occupancy costs increasing by £2,290 to reach £10,040 per workstation.

Outside London, Edinburgh is forecast to see the strongest growth, with occupancy costs increasing by £270 to reach £5,160 per workstation, followed by Manchester, Birmingham and Cardiff.

Only in Glasgow can occupiers expect to see further cost savings over the period, with costs projected to decline by - 0.6% between 2009 and 2013.

Karine Woodford, of DTZ, said: “In the current market, new occupiers will benefit from a wider and better pool of properties to choose from. As occupancy costs in prime locations become more affordable and space more available, a larger number of occupiers will be able to consider buildings in prime locations.”