Supply fell 14% to 1.112m sq ft in Q1 from 1.299m sq ft in Q4 2016, and 7% from 1.202m sq ft in Q1 2016. The majority of available supply (55%) is grade B space, with occupiers choosing to improve the working environment available for their employees and move to better quality accommodation. Only 14% of available office space is grade A.
Almost all of the grade A accommodation available on the South Coast is provided by high quality refurbishments of existing buildings. New office developments remain almost non-existent, save for 5 Benham at Southampton Science Park, which has been facilitated by its own micro-economic climate of high demand and high rent. Based on 2016 take-up, there is only 3.37 years’ available supply in the South Coast office market.