The last 18 months has seen a marked decrease in available office space along the M27 corridor, due in part to the substantial increase in change of use permission. One area that has been particularly affected is Portsmouth where potential occupiers are havingto re-evaluate where they look, such as Lakeside or North Harbour and in some cases out of Portsmouth altogether.
The knock on effect is some signs of improvement in rental levels as the economy continues its recoveryand landlord incentives are now beginning to reduce as the market turns in their favour.
The demand for residential conversion is increasing as permitted development rights and the overall ease in planning restrictions take hold. Portsmouth agents Holloway Iliffe & Mitchell has just sold Kingston House in the centre of Portsmouth to Pinsett Developments for residential conversion and onward sale. In the same area it also sold Compass House which has since been converted into retail and residential units all of which are now occupied.
Stuart Mitchell, director at Holloway Iliffe & Mitchell comments: “We are seeing increasing interest in secondary office space which is either vacant or on a short term lease as investors look to capitalise on the relaxation of planning regulations.
“Across the south, but particularly in and around Portsmouth there is approximately 250,000sq ft of officespace that is either in the process of being converted or has the potential to be converted into residential or student accommodation and this is having quite a big impact. The inevitable squeeze on available space means occupiers must be prepared to move more quickly than in recent years as quality space becomes harder to find.”
