Recap of the Southampton office market

Is your business considering an office move southwards? Well Southampton could be the ideal choice for your office relocation if CB Richard Ellis’ latest office figures are to be believed. The commercial property market in the southern city has seen a considerable improvement in its market standing since the recession ended and things are looking up for the office space hub. 

Many office movers choose this city because of its accessibility, close proximity to London and cheap office rental rates. Since 2009 the prime rent in Southampton offices has remained stable. Take up has decreased since H1 2009 but this means that it is a market in the tenants’ favour, reflecting cheap rents as availability sees an increase. As of June 2010, prime rent was at a stable £19.00 per sq ft, which has remained steady for the previous two quarters. Office movers heading to Southampton taking up a typical ten-year lease on their commercial property often receive 18-24 months rent free. The rental rates for grade A space are stable and secondary space rental values are predicted to fall slightly. The vacancy rate is currently at 11.0 per cent, a small change since the recorded rate of 9.0 per cent in 2009. The prime yield in H1 of 2010 is at 6.25 per cent showing a decrease of 0.5 per cent since 2009. 

Despite Southampton being limited in the first half of this year to smaller office space transactions, the outlook is positive with steady demand expected.