In conjunction with Business South and Southampton City Council, CBRE hosted its annual property market insight briefing on regional city performances across the South East at the Ageas Bowl, Southampton to almost 100 local occupiers and investors. CBRE’s UK Director of Research, Andrew Marston was joined this year by Stuart Love, Director of Place (Environment & Economy) at Southampton City Council who gave a key note speech on the Council’s current Master Plan activity.
Andrew Marston gave an update and overview of the big picture trends across the UK, particularly office markets and those outside London, with an emphasis on local performance. He also outlined CBRE’s headline forecasts for rental growth and investment in Southampton and the wider South East.
CBRE has been at the forefront of deals across the South Coast in 2014, including the sale of Fat Face’s HQ in Havant to Fidelity in June and Blake Morgan’s office building at New Kings Court to Capital Trust earlier this month. In the last week, CBRE sold Brunswick House in the City centre for £3.6m to Empric Student Property and Revcap Advisors for student housing
Charlotte Place – a bit of bell weather for the Southampton market – has also seen a number of transactions with potential lettings to NYK Lines and Yourmove and existing tenant BLM (Berryman Lace Mawyer) is also looking at taking more space. This means that for the first time the building is virtually fully let.
Looking ahead to the second half of the year, all 23,000 sq ft at The Pavilion at Botleigh Grange is currently under offer to become a new HQ for a major local occupier.
Commenting on the day’s event James Brounger CBRE’s Managing Director for the South Central region said: “We were delighted by a fantastic attendance at this year’s property market briefing. One of the key themes outlined by Andrew was the office supply squeeze, driven by a stronger economy improving occupier confidence and leasing activity, but also the loss of space to other uses, including permitted development to residential, something very pertinent to Southampton. From an investment perspective, today’s focus was on the pricing differential between London and the rest of the UK, and how that dynamic has shifted so far this year.”
Stuart Love, Director of Place (Environment & Economy) at Southampton City Council, added: “Two years ago, Southampton City Council laid out its vision for the city in its City Centre Master Plan. This vision included £3 billion of investment by 2030, and 7,000 jobs by 2026. This vision is becoming a reality, with £1.5 billion in investment already committed.
“Southampton presently has around 50 restaurant, café and bar occupier opportunities in a variety of sites across the city, including those within: the city centre Cultural Quarter, the city’s newly approved leisure hub at Watermark WestQuay, and many sites overlooking the waterfront; with many already let or under offer.
“Our city sees over 400 cruise ships visit over the course of a year; and with two excellent universities, a population of nearly quarter of a million, and with 3.5 million people living within an hour’s drive, the footfall and opportunities for occupiers are excellent.
“I am delighted to have been invited to be the guest speaker at CBREs annual property event briefing, to highlight everything that Southampton has to offer.”
