Market snapshot

Office Market Pulse South Coast Q4 2012

Total office take-up on the South Coast in 2012 was 18% down on 2011. However, office take-up in Q4 2012 showed an improvement on Q3, with some significant transactions completing. The development market also showed signs of improvement, with a 28,000 sq ft pre-let agreed to Selex at Endeavour House, Southampton.

In this issue:

Office take-up improves but outlook remains uncertain

Office take-up on the South Coast in Q4 2012 totalled 62,595 sq ft, compared to 40,743 sq ft transacted in Q3 and the 25,500 sq ft recorded in the same period of 2011.

Enquiry levels in the new year have started positively, however the outlook for 2013 remains uncertain. For a breakdown of current South Coast office enquiries over 5,000 sq ft, click here.

Significant occupational transactions in Q4 2012

Property Size Landlord(s)  Tenant/Purchaser  Lease information 
Endevour House, Southampton 28,000 sq ft Cordea Savills / Canmoor Developments  Selex  Pre-let, confidential terms 
30 & 31 Town Quay, Southampton 14,000 sq ft Associated British Ports Peer 1  12 year lease, £18.57 per sq ft 
Cando House, Eastleigh 10,239 sq ft  B&Q  Private investor  Sold with vacant posession, £30 per sq ft 
Mitchell House, Southampton 6,620 sq ft  Topland  Manpower  Assignment from Specsavers, expiring December 2014 

Steady supply of office space

Office supply on the South Coast stands at 1.75m sq ft - a figure that remained broadly stable in 2012. Availability has been maintained through the loss of some office space to alternative uses, including re-development for residential, student accomodation and hotels.

For a detailed breakdown of supply by centre click here, or for a breakdown of availability by grade click here.

Improved investment activity continues

Following the welcome investment activity in Q3, this positive trend continued into Q4.

Key investment deals from Q4 2012

Property  Size  Vendor Purchaser(s)  Price  Yield 
Eagle Point, Segensworth West 29,692 sq ft  Telereal Trillium Craigard Investments  £3.1m  10.7% 
Shore House, Portsmouth 20,404 sq ft  CBRE Global Investors  Forelle Estates  £1.6m 18%
New Kings Court, Chandlers Ford 54,334 sq ft  Receivers Kennedy Wilson  £8.7m  10.25% 

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Andy Hodgkinson

023 8071 3075

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Andy Hodgkinson
Director - Office Advisory

023 8071 3075

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