Requirements for Grade A office accommodation in Northampton remain high although uncertainty surrounding the on-going Brexit negotiations continues, according to leading national commercial property consultancy Lambert Smith Hampton (LSH).
Tim Bell, graduate surveyor in office advisory at LSH in Northampton, said: “Over the past two quarters, letting transactions of 5,000 sq ft plus properties within the Northampton office markets have plateaued. This is due to the continued scarcity of available prime stock, although uncertainty surrounding Brexit negotiations hasn’t helped.”
LSH’s Office Market Pulse report shows that in Q4 2018 new lettings in the town centre amounted to 26,418 sq ft, with further large pre-let transactions, as yet unconfirmed, in the pipeline. Businesses operating in pharmaceuticals, medical and healthcare, professional services, and retail, distribution and transport, were among the new occupiers.
“The availability of office space within the town centre has continued over from Q3. Recent lettings, totalling 26,418 sq ft within Riverside House and 1 Greyfriars, demonstrate that an appetite for in-town office space continues. Available Grade A space of 104,000 sq ft is soon to be bolstered by the 60,000 sq ft being delivered at the Four Waterside development. Construction has also begun on units of 9,412 sq ft and 10,000 sq ft at Phase 2 of Waterside. The buildings were pre-let and pre-sold respectively.
“Without this new development, only 44,000 sq ft of Grade A space remains, and none of that is within town. This is significantly outweighed by the 280,000 sq ft of Grade B space still available.” He added: “Enquiries remain strong, driven by the desirability of the M1 corridor and lower rents when compared to competing commercial centres such as Milton Keynes.”
Total availability of office space across the city amounts to 398,661 sq ft, with 258,408 sq ft out of town and 140,253 sq ft in the town centre.
