According to quarterly research released by Lambert Smith Hampton, the South Coast office market is in supply shortage due to increasing demand, meaning that prime rents are on the rise.
Office supply fell 14% in a single quarter along the M27 corridor and it is anticipated that this fall will continue throughout 2015.
Andrew Hodgkinson, Director of Office Agency for Lambert Smith Hampton, explains: “With a continual trend of falling supply, possibly to a level below 1,000,000 sq ft in 2015, we anticipate prime rents may breach £20 per sq ft. Investors have been hesitant to purchase in the first quarter, largely due to the imminent election and the uncertainty surrounding it, further increasing the pressure.”
