Key Trends in Southampton’s Office Property Market Predicted by Top Real Estate Agency

CBRE Southampton Forecasts Office Property Trends Influenced by Eco-Friendly Refurbishments

Southampton’s office property market is set to see a significant shift in trends, according to insights shared by CBRE Southampton at a recent real estate market outlook briefing. The top real estate agency predicts that requirements for quality, eco-friendly refurbishments, and pre-let development will heavily influence the sector in the coming years.

During the briefing, which attracted 60 attendees at Ocean Village’s Harbour Hotel, Jennet Siebrits, CBRE’s UK Head of Research, highlighted investors’ optimism amidst dipping interest rates and an active property market. The agency is targeting over £47bn in UK national investment activity for 2024, surpassing the 2023 figure of just over £43bn, emphasizing investors’ commitment to strategic approaches.

Simon Philips, CBRE Director of Planning & Development for Southampton and the Midlands, noted the relaxation in planning laws allowing unlimited conversion of office space under permitted development, a significant change from the previous restriction of 1,500sqm.

With these developments in mind, future office property trends in Southampton are expected to be driven by refurbishment, pre-let developments, and flexible conversion of existing office spaces. Lower interest rates and an anticipated increase in the property market should provide further incentives for estate investments in the area.

James Brounger, Head of CBRE in Southampton, emphasized the current economic climate’s impact on speculative development in the region. He highlighted the importance of quality buildings with strong sustainability credentials, as employees increasingly prioritize working in high-quality spaces. Brounger noted that only 15% of Southampton’s offices have an A or B EPC rating, indicating a need for refurbishment to meet ESG credentials and improve the overall office stock in the area.

Brounger also stressed the importance of collaborative efforts between occupiers and developers to deliver new buildings on a pre-let basis and repurpose the poorest buildings in order to effectively manage and enhance the office stock in Southampton. As the office property market continues to evolve, a focus on sustainability, quality, and flexibility will be key drivers shaping the future of the sector in the city.