COMMENT Southampton is the economic powerhouse of the Solent. With a population of 253,000 and an economy generating £6.9bn in GVA during 2020, according to PwC, it punches above its weight across the wider area.
Its commercial office market benefits from a strong professional and financial occupier base. It is also a city of innovation: the University of Southampton Science Park contains around 50 businesses connected to the university and houses business incubator space to help companies succeed.
According to 2019 data from the Centre for Cities, Southampton has more business start-ups than the national average. The city has 78.61 new businesses for every 10,000 people, compared to the UK average of 58.42. Over the next five years, Southampton is forecast to see office-based employment growth of 4.2%. The tech and creative sector will see the highest level of growth.
These companies need collaboration and culture to grow and innovate. As we emerge out of lockdown, the office will become a place where colleagues connect, having spent so much of last year working from home. Additionally, the rollout of Covid-19 vaccines across the UK has raised hopes that life in city centres will soon return – even if that is on a more flexible basis. What is important is how workplaces ensure that connection and collaboration is maintained. This is especially important in a market that is in short supply of high-quality office accommodation.
Flexible solutions
Flexible access solutions for short periods during the day, cycle parking, changing rooms, hotdesking and touchdown space are all the new buzz words of the future office of Southampton.
Office take-up in 2021 is higher than the equivalent periods for each of the last five years. Rents on refurbishments have also gone to record levels, further strengthening the case for new-build redevelopment.
Southampton provides many opportunities for those who want access to its city-centre office district, while living in the wider city or suburban areas giving easy access to London as well as national parks and nearby beauty spots. Southampton also offers an array of cultural and leisure activities for city centre workers.
New major mixed-use schemes including Station Square and Sovereign Centros’ Leisure World look set to add to the amenity offer with homes, hotels, a cinema, casino and improved public realm. This will link a new urban quarter with the wider city and improve connectivity with Southampton’s historic waterfront.
Centre of excellence
Southampton and the wider Solent area will also benefit from the proposed Solent Freeport. One of eight across the country, the Solent will likely benefit from an increase in private investment with tax advantages for employers based in the region. The Solent Freeport is expected to create 52,000 jobs across the UK with 26,000 direct jobs in the Solent.
As part of the plans, ambitions for net zero will be pushed by growing sustainable energy production. A dedicated centre of excellence will provide green skills and jobs to ensure local communities can benefit from the opportunities created through environmental innovation.
According to 2019 data from the ONS, before the pandemic the average commute time of those working in Southampton was around 20 minutes. Priorities have changed for homebuyers.
A blend of home and office working means for some a commute of more than 30 minutes or even one hour would be a worthwhile compromise. This will significantly widen the talent pool for office occupiers based in the city. At the same time it will provide attractive opportunities for those who wish to move to facilitate a better quality of life and work-life balance.
Martin Hastelow is head of Southampton office at Savills
