Lease Advisory Market Update
Tuesday 15 August 2023
Flude Property Consultants are delighted to share with you our most recent lease advisory update. Acting on behalf of both landlord and tenant clients, our dedicated professional services team have concluded a number of rent reviews, lease renewals and re-gears.
In recent months, market activity has remained consistent across all of the core sectors locally. Generally speaking, there is still an underlying lack of good quality industrial supply across the south coast. As a result of that, we have seen pockets of resilience emerge across the occupational market in certain locations, and rents have mostly remained buoyant. That said, we have seen evidence of rents ‘plateauing’ and beginning to soften in other locations, as occupational costs continue to rise in light the ongoing energy cost inflation crisis and increases in business rates for industrial premises.
Offices are still transacting, although less frequently than in previous months. In Brighton, most current requirements are for high quality accommodation, and such spaces are typically achieving the strongest rents and shorter void/marketing periods. In the more regional sub-markets, market activity remains steady. However, our experience is that most deals being concluded are for smaller suites, and rents have remained relatively static.
Lastly, the retail sector appears to be the most susceptible to market uncertainty. In Brighton, reduced consumer spending is still supressing occupational activity, and we are seeing a higher number of vacancies and shorter ‘pop up’ lettings as landlords try to mitigate their vacant rates liabilities. In other locations such as Chichester, there has been continued take-up as retailers continue to take advantage of re-based rents and reducing business rates. Of note, we have seen a number of occupiers relocating to ‘better’ retail pitches, although they are typically seeking more flexible lease terms, and more favourable incentives.
Click on the link below to view our market update flyer.
