Every October we conduct a survey of available industrial and office floorspace in South East Hampshire. Our latest survey is summarised below. The full survey data can be downloaded.
Office Availability 2015
The availability of office space in the PO postcodes of South East Hampshire has risen by 3% to 630,000 sq.ft over the last twelve months. A surprising fact following a major letting to HSBC at Whiteley within the study period. Also the loss of over 30,000 sq.ft of office floor space in Fareham Town Centre due to permitted development change of use from office to residential.
Perhaps the real trend in this market is not the buildings themselves, but the way in which they are being used. Desk occupancy is being studied and offices fitted for use levels, and not the total number of occupants.
Portsmouth has seen full take up of space at Lakeside, the former IBM complex. It is understood that the final phase of this development will now become available as IBM relocate entirely. However, there is a significant rise in available Portsmouth offices as a result of more ex-Government space becoming available.
The permitted office to residential change of use has now been extended to May 2019, which is likely to shrink available stock. Rents are likely to remain stable in this sector in the near future.
Industrial Availability 2015
The availability of industrial buildings in South East Hampshire has fallen between 2014 and 2015 from 1.26 million sq.ft to 1.02 million sq.ft, a fall of 20%. Availability is now approximately 4% of the total built stock.
As availability decreases the influence of large units increases. The two largest available buildings on the market together now account for 15% of the total available stock.
Only the Local Authority Borough of Gosport saw an increase in vacant floor space; although take up was good within the Borough as the former Cyanamid site redevelopment, known as Fareham Business Park, was let.
There remains a good choice of small units throughout the area in sizes of up to 1,500 sq.ft. There is a lack of ‘move on’ accommodation from 2-5,000 sq.ft.
Industrial rents are again rising. This trend is likely to continue. However, developer response to new market conditions remain slow. New projects are now being progressed in Havant, Portsmouth and Lee on the Solent.