South Coast

The South Coast is one of our smaller regions, but its coastal location and good transport links means it is an attractive location for certain occupier types. The region is home to the port of Southampton, which is the UK’s second largest container port, and one of the largest in terms of volume of goods handled. The region also benefits from easy access to the motorways through the M3 and M27 junctions, around which occupiers tend to locate themselves. The letting of a handful of speculatively developed schemes in the region has taken supply to very low levels, but further development or refurbishment activity is needed before rents show meaningful growth.

2020 was a strong year for occupier take-up in this region in 2020, from a range of different occupier sectors. Pharmaceutical company Pfizer bought land for development in Havant, manufacturers Stannah Stairlift and Bio Pure Technologies pre-let space in Andover and Portsmouth and logistics operator Xpediator let space in Southampton. There was no speculative development in the region in 2020 and the availability rate in the region is a below average 4.4%. Given the restricted nature of this region’s market, our outlook for prime rents is a below average 0.4% per year over the next 3 years. The potential for certain locations in the region to adopt ‘freeport’ status has the potential to change this market’s supply profile though, especially as there is land around Southampton and Portsmouth which could accommodate market-driven development.