Lambert Smith Hampton’s South Coast office was named the highest climber in EGi’s M27 corridor office league table, rocketing up the coveted annual rankings from fifth in 2014, to finish in second place this year. The rankings are compiled based on transactions recorded between September 2014 and August 2015.
The team’s success over the course of the year ensured that LSH disposed of around 170,000 sq ft of office space. The team also boosted the total volume of deals carried out to 42 in 2015, up from 29 in 2014, whilst almost doubling average deal size to 4,000 sq ft.
Particularly significant deals included a 15,113 sq ft letting at Eagle Point, Segensworth to Smoothwall and Amiri Construction, 21,809 sq ft of lettings at Spinnaker House, Fareham, to Mercator Media and Wartsila and a 16,682 acquisition at Cumberland House, Southampton on behalf of Regus. The team’s biggest deal was a 22,939 sq ft acquisition at Tollbar House, Hedge End on behalf of Nice Systems UK Ltd.
In October, EGi also named Lambert Smith Hampton (‘LSH’) the most active commercial property agent in Hampshire for 2015 for the ninth consecutive year, a further demonstration of the firm’s strength in the southern market.
Andrew Hodgkinson, Director, Lambert Smith Hampton’s South Coast Office Agency, said: “The EGi rankings are a real testament to the hard work the whole team has put in over the course of the year. Across the whole of the South Coast, we have worked exceptionally hard to ensure the best service possible to our clients, in conjunction with a marked increase in the volume of deals transacted. We hope to continue this strong momentum throughout the next year and to build on all we have accomplished in 2015.”
Commenting on the market itself, Hodgkinson continues: “The change in legislation for permitted development rights has ensured a significant loss of office stock to residential uses. Since May 2013 and the inception of the new legislation, around 750,000 sq ft of office space has been lost on the South Coast to alternate uses such as meeting the growing demand for student accommodation from the cities’ burgeoning university populations.
“With availability continuing to fall and limited new development in the pipeline, the South Coast occupier market continues to gather momentum. Corporations are benefiting from improving economic conditions and are looking to expand their businesses as a result of increasing confidence and stability. There has also been a marked shift on the part of companies wanting to ensure that employees are provided with attractive, collaborative environments within which to work. We are predicting a strong finish to 2015 with the possibility of over 500,000 sq ft being taken up by the year end.
“2016 will see some refurbished offices return to the market in Southampton city centre and at Lakeside in Portsmouth, bolstering current supply. Whilst this will help satisfy occupier requirements in the short term, it is likely to act only as a sticking plaster in resolving ongoing demand. As a result, in areas with an acute lack of supply, such as Winchester, we may see schemes come forward, such as The Chilcomb Centre which could provide up to 90,000 sq ft of Grade A office space and with prime rents across the Solent corridor reaching and in some instances surpassing £20 per sq ft.”
