Southampton: CBRE predicts reinvention of existing space in response to office shortage

Global real-estate adviser CBRE has launched a report which predicts that, given the increased risk associated with large-scale redevelopment following the referendum, a rise in the reinvention of second-hand office space will be a likely response to the ever-looming shortage of quality office space in a number of UK regional office markets. Southampton is seen as a core example.

The report, based on figures from Q4, 2015, shows that Southampton has just over 2.5 years’ supply of Grade-A supply, which lags far behind the Thames Valley which has in excess of 6.5 years’ supply.  As of Q3 2016 this figure has reduced further to 1.5 years and it looks set to continue to decrease as there is no prospect of new-build office stock in the foreseeable future.

But in Southampton major speculative refurbishment programmes are already delivering much-needed Grade-A space. The report takes King’s Park House as a great example. Its £2 million refurbishment began with all four floors stripped back to the core.  

In response to the increasing requirement for sub-10,000 sq ft floor plates, the reinvented Kings Park House will provide self-contained floor plates of between 3,000 and 4,000 sq ft in impressive Grade-A accommodation. (CBRE and Hughes Ellard have been appointed marketing agents for the available space. 

Emma Lockey, associate director of CBRE South Central, commented: “Southampton is now one of the few cities where there has been no new speculative office development and with the shortage of suitable sites, this looks set to continue.  

"We believe refurbishment of existing stock to a modern category-A level will become an increasingly favoured option for occupiers and landlords alike.”