Key highlights include:
- Leasing activity this quarter has seen some occupier expansion, although consolidation or 'right-sizing' has been a more prevalent theme.
- The 'summer slow-down' saw subdued take-up levels at 555,563 sq ft in Q3 across the South East; although, total take-up levels year-to-date remain strong at 2,000,000 sq ft.
- Supply levels in the South East continue to be eroded as overall vacancy levels are now at just 7.94%.
- Prime rents remain strong and mostly unchanged across the South East.
- Q3 2019 witnessed 31 South East office investment transactions totalling approximately £883 million. This is a 78% increase on Q2 volumes. However, 61% of Q3 volumes were attributed to two council-led business park deals.
The key investment trends of Q3 2019 were:
- 45% of all transactions in the quarter were ‘off market’
- Long income opportunities with guaranteed rental performance remain keenly sought after
- Multi-let town centre offices remain top of investors’ shopping lists
- There remains a diverse group of buyers in the market with the largest market share attributed to property companies and residential developers at 23%
