The shortage of office stock on the south coast is becoming critical, according to quarterly research released by Lambert Smith Hampton.
Office supply fell 14% in the quarter along the M27 corridor after a flurry of deals, and it is anticipated that this fall will continue throughout 2015.
The number of enquiries has increased by 10% from Q4 2014 to 52 and new requirements have been recorded for office space in excess of 50,000 sq ft.
Office supply fell to 1.3m sq ft in Q1 2015 representing a 14% fall in supply in a single quarter. The report predicts supply could fall to a level below 1,000,000 sq ft in 2015.
All of these factors will drive up rent in the area. Andrew Hodgkinson, director of office agency for Lambert Smith Hampton, said: “We anticipate prime rents may breach £20 per sq ft. Investors have been hesitant to purchase in the first quarter, largely due to the imminent election and the uncertainty surrounding it, further increasing the pressure.”
