High Demand for Office Space in Southampton
NEW figures from property management company CBRE show that the Southampton office market is performing well, with high demand from professional services companies.
However there continues to be a shortage of ready-to-occupy space.
CBRE’s bi-annual office research shows that total take-up in the city and surrounding area for the first half 2017 was 53,086 sq ft.
Research reveals that deal flow has been relatively steady, with several individual lettings of over 10,000 sq ft, the largest of which was at the newly rebranded Hampshire House, Chandler’s Ford.
In two separate transactions, telecomms company Daisy Group and utilities supplier Utilita each took 10,500 sq ft at £19.75psf.
Prime rents have now pushed higher to in excess of £20 per square foot with secondary rents rising and a marked reduction in availability in this sector of the market.
CBRE regional managing director James Brounger said: “Despite political and economic uncertainty this year, the Southampton office market performed well. We now expect prime rents to consolidate at in the early £20s per square foot for refurbished space.
“Demand from professional services companies was particularly strong in the early part of the year and with some larger deals currently being negotiated, we expect to see a strong second half to 2017.”