Latest figures from regional real estate adviser Hughes Ellard show that there have been 350,000 sq ft (3,251 sq m) of office transactions to date this year in the Solent Corridor in Hampshire.
The total let or sold along the M27 between Southampton and Portsmouth is 100,000 sq ft (9,290 sq m) more than the annual average for the corridor.
Of the total space, Hughes Ellard, which has offices in Southampton and Fareham, has been effective in a record half of the deals.
Russell Mogridge, the business space director at Hughes Ellard, said: ‘It has been a buoyant year so far for the sector, with 350,000 sq ft of office transactions on the Solent Corridor, of which we have been involved in 50% of the activity. The total is 100,000 sq ft more than the average for the corridor.’
He added: “Most activity has been at the eastern side of the M27, namely at Solent Business Park at Whiteley and 1000 Lakeside in North Harbour, Portsmouth.”
Notable transactions include 100,000 sq ft let at 1000 Lakeside in the last quarter, including latest occupier The Southern Co-operative. The supermarket and funeral care chain signed a 15-year full repairing and insuring lease on 17,150 sq ft (1,593 sq m), for an undisclosed rent, with Hughes Ellard and joint agent Vail Williams representing landlord Highcross.
More than 60 companies and organisations, employing 4,500 people between them, including at IBM’s headquarters, are now based at Lakeside.
Another significant deal was the freehold sale of 60,000 sq ft (5,574 sq m) at Europa House in Havant Street, Portsmouth.
At Solent Business Park, one of the latest major occupiers is global healthcare products provider Covidien, which is listed on the New York Stock Exchange and has leased the first and second floors at Four500 Parkway, totalling 36,594 sq ft (3,400 sq m).
Russell added: “Current office trends are showing the professional service sectors are expanding with the likes of recruitment and legal services, with a preference for single floor plates, improving communication and staff morale with a team atmosphere through open-plan working.”
Nik Cox, Director, based at Hughes Ellard’s office in The Avenue, Southampton, said: “This is good news, although we are yet to see take-up levels on the western side of the M27, including Southampton, improve. However, we are seeing the beginnings of renewed interest and it may well catch up with the eastern side by the end of the year.”
Looking at the industrial market, local manufacturing and warehouse operators are suffering from limited choice in the region of buildings to move to. This is stimulating strong demand from commercial property investors and funds, who feel this will reduce vacancy rates and possibly lead to rent rises.
There are only a handful of industrial buildings over 20,000 sq ft (1,858 sq m) available to let, one of which is Unit 5 Titchfield Park, located at Segensworth, near Fareham; it is available with a yard.
Hughes Ellard employs 19 staff and was established 36 years ago to become a regional force in chartered surveying.
The company’s professional services include development appraisal, search and acquisition, valuation, rent review and lease renewal, asset management, building consultancy, disposals and investment advice throughout the Solent Corridor and the UK.
