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Shortage of supply, planning delays and investor caution continue to define the Surrey and Hampshire landscape
Observations made at this year’s UKREiiF conference in Leeds align closely with market trends identified by Curchod & Co in its recent research into the Surrey and Hampshire office markets.
Speaking after the event, Piers Leigh, Partner at Curchod & Co in Woking, said the issues raised at a national level, particularly the lack of new office supply, continued investor hesitation outside Central London, and the impact of planning delays, mirror what is happening regionally.
“Our recent research highlighted a growing mismatch between occupier demand and the space available,” he said. “UKREiiF confirmed that this is not just a South East issue. Across the country, regional office markets are facing the same challenge that we are seeing in Surrey and Hampshire. Businesses want to move into better quality space, but there’s simply not enough of it being delivered.”
In Q1, Curchod & Co’s market update showed that developers and owner-occupiers are becoming the most active buyers of office buildings in parts of Surrey and North Hampshire, often with a view to redevelopment. This is further limiting the availability of modern office stock for traditional occupiers.
“The trend we are seeing is one of contraction and repurposing,” Leigh added. “That might be right for some locations and assets, but it also creates a vacuum. Where newly refurbished space does come to market, it is commanding record rents. The demand is there. The product often isn’t.”
Leigh also echoed the concern voiced at UKREiiF about the planning system acting as a brake on progress.
“The ambition may be there at the government level, but under-resourced local authorities can’t always keep pace. That disconnect is having a direct effect on delivery — whether you are looking at housing, workspace or logistics.”
He added that UKREiiF reinforced the value of collaboration between regional agents, investors and local authorities.
“For us, events like this are about sharing insight, comparing notes, and making the case for what’s needed locally. The South East has a critical role to play in the UK’s economic recovery, but that depends on unlocking space that works for occupiers.”