South East Offices Snapshot
Key towns update of market activity.
With office occupancy still below pre-Covid levels and with increasing build cost inflation beginning to bite, a number of occupiers have delayed making long-term decisions, resulting in lower than anticipated levels of demand. Q1 take up across the 10 key SE towns was 313,790 sq ft, a decrease of c.25% on the same period last year.
Where transactions have taken place, this has largely been on Grade A space with good ESG credentials, resulting in a number of record rents being set. Despite lower levels of take-up, the flight to quality, a limited supply pipeline and a rapid rise in build costs, means that rents are likely to continue to increase, with £40+ becoming common for the best space across the region.