Curchod & Co: Resilience and adaptation remain key features of the Surrey and north Hampshire office market.
Curchod & Co recently shared the following article with NovaLoca.
“As we reach the end of the first quarter of 2024, the office market in Surrey and north Hampshire remains a landscape marked by resilience and adaptation.
Amidst the lingering effects of the COVID-19 pandemic, businesses and property stakeholders are recalibrating their strategies to align with the evolving demands for office space. The hybrid work model, a blend of remote and in-office work, has firmly taken root, challenging the traditional norms of office use and design. This shift has led to a notable trend: the “hotelisation” of office spaces, where landlords are increasingly offering fully fitted, high-quality, flexible spaces that cater to the convenience and well-being of their tenants.
While these office market trends were highlighted in our market update at the turn of the year, the key themes that emerged last year are still dominating the market.
First, there is still a pronounced shortage of office stock, a repercussion of slowed development pipelines during the pandemic and a cautious approach to new projects. This scarcity is particularly acute in prime office locations, where demand remains robust. Businesses, especially those in growth sectors like technology and professional services, are vying for spaces that not only meet their logistical needs but also serve as a tool for talent attraction and retention. These spaces are characterised by their high-quality fit-outs, flexible lease terms, and amenities that mirror those of luxury hotels – from wellness centres to concierge services.
Secondly, the evolution towards “hotelised” office spaces is emblematic of a broader trend towards workplace environments that prioritise flexibility, comfort, and sustainability. These spaces are not just places of work but are designed to enhance productivity, creativity, and employee well-being. As the market adapts to these changing preferences, the role of technology in facilitating flexible work arrangements and the emphasis on sustainability credentials are becoming increasingly important.
The data in the first three months of the year suggests a widening gap between prime and secondary office spaces, underscoring the premium placed on quality and location. Despite the overall scarcity, there is a nuanced picture across different locations, with some local markets experiencing more pronounced shortages and price pressures than others.
In Surrey, the prime office locations, such as Woking and Guildford, are experiencing a competitive market, with landlords achieving premium rents. This has been exemplified by recent transactions that underscore the shift towards quality and flexibility. A notable development is Surrey County Council’s strategic acquisition of 66,000 sq ft of office space in Woking, demonstrating the council’s commitment to improving its operational efficiency and its confidence in the office market’s resilience.
Elsewhere in the region, the market’s dynamism has been further evidenced by The AA’s decision to occupy 40,000 square feet at ‘The Plant’, Basing View in Basingstoke, underscoring the appeal of well-located, high-specification office properties.
As for the Surrey/Hampshire border’s market, the Black Water Valley, the message is probably “watch this space”. With a relatively high volume of older properties, there will be bargains to be had by both occupiers and investors.”
You can see all of the commercial property available on NovaLoca from Curchod & Co here.
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