Is it the ideal time to secure office space in the South East?
Thinking of securing Grade A office space in the South East? You may want to consider moving sooner rather than later.
On the back of 14 consecutive months of growth and the largest growth since May 2013 occuring in June, it seems that momentum is definitely back in the commercial property market and demand is starting to overwhelm supply.
Earlier this month we interviewed two agents based in the South East who have both reported that office space has been in high demand this year. Matt Clarke, a director at Chandler Garvey, said: “The demand at the moment is outstripping supply, certainly for Grade A office space”, while James Page, director at Page Hardy Harris, added: “There’s a tightening supply, so you’re going to see rent starting to push up and you’re going to run out of top grade office space in not too long.”
With agents in the area seeing an emerging issue of lack of supply for office space, businesses may have to start looking at alternatives. Matt says this is a trend that Chandler Garvey have seen growing this year: “People are looking at very good quality Grade B options or refurbishing units that they may not have done so before.”
As we are seeing a lack of available office space, businesses are having to be resourceful in seeking new top quality office space. But why is it that demand is outweighing supply so heavily at the moment?
Well one reason that has been suggested is the movement towards making commercial to residential conversions easier. Therefore, offices that have been sitting vacant in the past have been seen as ideal candidates for residential conversion.
Another cause put forward by James, is the lack of new developments: “There has been very little new build in certain terms. There’s been nothing much in Reading or Bracknell or Slough. There have been very little new builds going on.”
So while Page Hardy Harris and Chandler Garvey have been enjoying the resurgent office market in the South East this year, businesses may have to move quickly to secure the space they require, with the highest quality offices quickly becoming short in supply.
If the current rate of demand continues, businesses desiring an office in the South East may have to considering looking elsewhere.
Read our full interviews with James Page of Page Hardy Harris and Matt Clarke of Stupples Chandler Garvey by following the links below.
NovaLoca Interview: James Page, Page Hardy Harris
NovaLoca Interview: Matt Clarke, Chandler Garvey
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