Current availability is just below the five year average of 500,000 sq.ft.

Previously available large space units have been taken in whole or parts.

Town centre locations have been heavily affected by permitted change of the developments to residential. This has compacted availability into a smaller number of better quality office suites.

There is little new development activity. However, Mariners House at Waterside Gardens in Fareham has found an occupier from building completion.

Despite the changing trends of ‘working from home’ the office market has remained resilient to recent economic challenges.

There is a 15 % increase in available floorspace from October 2020. Much of this is attributed to new building completions in Fareham and Waterlooville.

Total availability of approximately 1.1 million sq.ft is marginally above the normal level of approximately 1.0 million sq.ft availability over the last five years, roughly 4% of the total built stock.

Small unit availability has fallen to its lowest recorded level, with most being centred within the Portsmouth City boundaries.

Rents have risen across all sectors of the industrial property market, led by the pricing of new space. Much of this new space is of higher specification than previously seen. The buildings mainly have higher eaves, better insulation and higher specification offices.

Portsmouth is now seeing rental levels exceeding £10.00 psf for new space of 5,000 – 10,000 sq.ft

Almost 50% of total availability relates to large, old buildings which may not be reused in their existing form.

Looking ahead, the opportunities for further development are being taken up. There will be a near future supply of more new units.

It is our view that recent rental growth is sustainable and will be maintained in the future.