The South East In My View by Jerry Vigus, Senior Director at LSH


The south coast market continues to benefit from its strategic coastal location and excellent infrastructure – allowing access to both domestic and international markets. The Solent Freeport has further underlined this point and elevated the region’s status as an important gateway between the UK and Europe.


This has made it particularly attractive for logistics and manufacturing occupiers, who have been behind a wave of demand that has fuelled rental growth between 20%-


30% over recent years - with no sign of this easing in the short term.


This continued demand from a broad range of manufacturing, 3PL and retail occupiers is supporting investor appetite for industrial / warehousing opportunities and has given rise to a pipeline of speculative development across the region.


The south coast occupational team at LSH is working on a number of speculative new developments throughout the M27 Corridor. Graftongate and Bridges Fund Management are underway with a new 135,000 sq ft unit at including Nursling 135, which is targeting BREAM Outstanding - a first of its kind in the region.


Also on the Nursling Estate, Salmon and RLAM ha ve just completed Quest 271 where they have built three units totalling 158,374sq ft, with one unit under offer. Following the success of Phases 1 & 2 at Adanac Park and two office pre-lets, Oceanic Estates are


Investors very much favour the south coast and we are seeing increasing amounts of capital looking at being invested in the region as evidences by the current pipeline of speculative development. As with the wider south east prime yields are now at 5%.


The region is also cementing its position as a hub for innovation and new technologies - particularly in the fields of maritime, autonomy and green growth. This is fuelling further demand for quality accommodation throughout the region, particularly in office and science park locations.


For more details please visit www.lsh.co.uk


developing the last phase industrial on the site consisting of 21 units amounting to 161,007sq ft.


On the Segensworth Estate Kingsbridge Estate are on site at Ferne Park building three units totalling 107,607sq ft where they are targeting BREAM Outstanding. Following the success of Phase 1 at Langstone Park, Havant XLB have just obtained planning for phase 2 amounting to circa 100,000sq ft and are due to start in site shortly.


We are certainly seeing occupier demand increasing and in particular looking at relocating to better quality units which are more efficient to run in comparison to older units


In My View by Lauren Udall, Director at Keygrove The South Coast is still open for business, says Director of


Commercial Agency at Keygrove Chartered Surveyors, Lauren Udall. Despite recent distractions such as UEFA Euro 2024, the General Election and the Paris 2024 Summer Olympics, Keygrove remain positive that enquiries for all commercial property are steady.


The office market is still adapting to changes since the pandemic. Employers are making much more careful decisions about staff welfare, the quality of space, local amenities and encouraging staff to attend the office on a flexible or hybrid basis. Smaller space enquiries remain frequent whereas, larger HQ buildings and larger floor plates in out of town business parks are more difficult to let. Landlords are having to offer large incentives to fill voids and, in some cases, consider ways to repurpose space. The freehold market is still relatively strong with small businesses opting to own and occupy where they can and investors taking space as long as they can see a future for a building, generally by way of residential conversion. Keygrove have transacted a lot of freehold office space over the past 12 months and we have more available along the M27 corridor.


Despite national press suggesting problems in the retail market, Keygrove have a constant stream of enquiries, mostly from small businesses looking to grow in local high street and marina locations. Watsons Property’s acquisition of all the commercial space at Royal Clarence Yard in Gosport will breathe some life into this predominantly residential marina development. We have space under offer and let to a variety of retailers who will contribute footfall and encourage more businesses into the location. The regeneration of smaller high streets and residential lead development contributes greatly to local economies. In the wider residential schemes, we would like to see better consultations with commercial specialists from the outset of the development stage.


COMMERCIAL PROPERTY MONTHLY 2024


Industrial property is still the most sought-after space but with a slight easing of demand fuelled (ironically) by an increase in fuel prices alongside more economic uncertainty brought forward by the election and change in government. Economic, efficient space is the most popular and new build estates near motorways and particularly Southampton Docks are in demand. With ABP on the acquisition hunt for more space at Southampton Docks, businesses in traditional locations dockside are having to find alternative options. Open storage land is in very short supply.


Following the success of Adanac North Phase I, built and let speculatively off plan during 2019, Oceanic Estates have now offered Phase II which is almost fully let and Adanac Trade Park which is due to complete in Q4 2024. This development is a landmark site within 10 minutes’ drive of Southampton Docks and the lack of alternative space has driven rents upwards over the past 5 years. It seems that national occupiers are easing on their acquisition requirements but occupiers with growth plans and specific location lead requirements remain acquisitive. Decision making is taking a little longer as businesses spend time evaluating the future not only for the business but also for its workforce.


Transaction timescale is the largest frustration to the market with simple lease and vacant freehold transactions taking 8 -12 months to complete. Managing the expectations of all parties involved in these long-winded transactions is becoming more difficult. Sellers and landlords are wishing to push timescale restrictions on to purchasers but lawyers and lenders seem unable to accommodate speedy transactions. It is clear that under resourced professional advisors are struggling but this battle to ensure quick movement is impacting productivity across all industries. As interest rates ease and September brings the annual ‘back to school’ focus Keygrove are very positive that businesses will thrive.


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