The M27 Office Market Shows Significant Transactions

Richard Pullen, Director of Commercial Property Consultancy Pullen Associates, reports that ‘there have been a number of large office transactions along the M27 corridor so far this year, in an otherwise difficult market.  There have been approx 350,000 sqft (3,251 sq m) of office transactions in the Solent Corridor, with 100,000 sqft being let at 1000 Lakeside in North Harbour, Portsmouth.’ 

“The most recent letting is to Southern Co-Operatives who have taken 17,150 sqft (1,593 sq m) alongside IBM at 1000Lakeside.  Other transactions includes a letting at Solent Business Park  to Covidien, a New York Listed Stock Exchange company who has leased 36,594 sqft (3,400 sq m) being part of the flag ship office building Four500 Parkway and the sale of 60,000 sqft (5,574 sq m) at Euopa House in Havant Street Portsmouth”.   

Richard Pullen says that ‘whilst there has been an above average amount of office accommodation take up so far this year, this has been concentrated on the eastern end of the M27.  The take-up of offices on the western side of the M27 is much lower.   The main issue is the lack of speculative office development which is resulting in a reduction in the supply of Grade A accommodation and therefore companies looking for quality larger space have to consider the eastern end of the M27. 

There is increasing interest from the professional sectors that are expanding and looking to relocate to better open plan accommodation.  These businesses are taking the opportunity to consider moving into offices on one level or combining one or more offices together to make more efficient working practices.

Richard Pullen says that ‘there are opportunities for tenants to acquire offices and to make cost-savings but understandably the decision- making process is slow as business are being cautious in their relocation strategies which is resulting in a gradual reduction in the supply of quality space rather than any significant upturn in occupier demand'.