Despite a current lack of supply, planned development and urban regeneration will ensure Guildford remains a key location for office occupiers, according to Lambert Smith Hampton’s annual Thames Valley Office Market report.
– Take-up in 2015 was at its highest level since 2007.
– Due to a shortage of ready-to-occupy space, there was only one grade A transaction.
– Supply fell to a low point, 5.4% of built stock, at the end of 2015, however, a number of refurbishments commenced in Q1 2016.
– Prime headline rents reached a record level of £34.00 per sq ft in Q1 2016, a growth of 7.4% per annum since 2012.
Paul Dowson, head of LSH Guildford, explains: “Following a strong year for take-up in 2015, supply of good quality space in the first half of 2016 has been very restricted. The lower levels of take-up in the first half of the year may be a result of this, but are more likely to have been influenced by Brexit and economic uncertainty.
“The recycling of a number of buildings will significantly boost supply and tenant choice in Guildford and the key committed refurbishments include Compton House 37,500 sq ft (Aviva) – completion in August 2016, Two London Square 43,000 sq ft (M&G) – completion September 2016, Onslow House 34,000 sq ft (Standard Life) – completion December 2016 and Cathedral Square 60,000 sq ft (Ediston/Europa) – completion June 2017.
“With a combination of more high quality office supply and urban regeneration proposed by the new Guildford town centre Masterplan, we expect Guildford to remain a popular destination for business.”
