Lease Advisory Market Update
Wednesday 25 October 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.
Across the south coast, there remains a limited supply of built and available industrial/warehouse accommodation. That said, we are seeing more speculative development, especially in the likes of Shoreham-by-Sea and Burgess Hill, generally targeted at the logistics sector. In Brighton and Hove, there is an ongoing ‘churn’ in terms of availability of smaller units and demand has held up well, with rents remaining resilient. However, our experience across the south coast suggests such to have plateaued, and are beginning to soften in comparison with 2021/22 levels.
For offices, there remains a ‘two-tier’ market in Brighton, with good levels of demand for smaller and higher quality offices that are seeing some rental growth. However, secondary accommodation, particularly where in need of upgrading, is finding attracting new tenants more challenging, with occupiers looking to capitalise on such and seeking incentivised rental packages. In Portsmouth, there has been ongoing occupational activity and a number of lettings of larger suites.
Lastly, the retail sector continues to be the most susceptible to market uncertainty, with reduced consumer spending supressing occupational activity. That said, demand for retail premises in Brighton’s bohemian North Laine district remains strong, underpinned by limited vacancies, and Zone A rates are close to pre-pandemic levels. In other locations such as Chichester and Portsmouth there has been continued take-up, as retailers seek 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, illustrated by our recent letting of 19-20 East Street, Chichester to Mint Velvet.
Click on the link below to view our market update flyer.
