Spring Step for South East Offices

A recent report from Colliers International concluded that office lettings in Q1 2017 in the South East reached 741,295 sq ft, which is down around 5% on a year ago

The largest deals in the first quarter were to ASOS at Leavesdon Park, Watford (75,000 sq ft), Rank in Maidenhead (40,000 sq ft) and Allegis in Bracknell (31,000 sq ft). Macquarie Bank recently moved some office functions from their City HQ to Reading taking 12,500 sq ft.

Some 51% of take-up this quarter was for office space between 20,000 sq ft – 50,000 sq ft, which came in 12 deals.

Watford witnessed strong take up this quarter (105,000 sq ft), including ASOS at Leavesdon Park and Salmon Ltd who took a 30,000 sq ft pre-let at Clarendon Works.

Demand for space across the south east remains high according to Strutt & Parker, currently standing at 4.6m sq ft – of which 10% (462,000 sq ft) is under offer.

Metropolis added nearly 50 new searches for office space in the South East region to its live database in Q1 2017. Sectors with most occupiers newly searching include law, insurance pharmaceutical and a number of IT-related companies.

There continues to be strong occupier demand for best quality office space across the entire region say Colliers. However, supply of new office space is down 7% on Q4 2016 and the availability of vacant offices is down to half the 2010 level. There are relatively few schemes coming to the market over the next two years in both the Thames Valley and the wider South East.

Q1 2017 saw new record office rents set in Hammersmith (£59.00 per sq ft), Maidenhead (£38.00 per sq ft), Reading (£36.50 per sq ft), Watford (£31.50 per sq ft) Redhill (£31.50 per sq ft) and Slough (£28.50 per sq ft).

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