SHW’s Q1 2026 South East Office Focus predicts a more positive 2026, with several buildings under offer as we start the new year.
Tim Hardwicke, SHW’s Partner and Head of Agency, comments: “2025 take up across the South East office market was relatively slow in most centres with very few transactions happening over 5,000 sq ft, the minimum size in which we start to capture our data, although the sub 5,000 sq ft market has been quite active in most centres.
“As in recent years, the majority of take up is linked to a ‘flight to quality’ move. Economic uncertainty has held back a number of occupier moves which has resulted in low levels of take up. However, as we enter the new year there are a number of buildings under offer/transactions agreed, and so as we run into 2026, we are more positive and expect more letting activity.”
As business and employment costs increase, occupiers are looking hard at property costs, how much space is needed and larger incentives are often needed to reach quoting rents. As a result, buildings offering great space, with amenity, at competitive rents and/or larger incentives are likely to see higher letting activity. Successful lettings in key towns are encouraging investors to spend on refurbishment and repositioning, however debt funding for this is hard to secure.
In Croydon, top rents are up marginally up to £36.50 per sq ft, from £36 per sq ft over the last three years, with take up also slightly higher year-on-year at 84,500 sq ft transacted over the 5,000 sq ft level measured in this report. These include seven lettings at Corinthian House, and 13,000 acquired by SHW on behalf of Southern Housing at Mosaic East. Logged demand increased significantly in the last quarter of 2025 which bodes well for the year ahead. With approximately 1.25 million sq ft of office space being lost to permitted development rights, Croydon will likely see an uplift in rents across office space in the next couple of years.
In Epsom and Leatherhead, rents dropped to £27 per sq ft in 2025 (from £29.50 per sq ft in 2024) and take up was significantly down year-on-year with 32,000 sq ft leased. However, demand continues to be high for the right space.
Similarly in Redhill & Reigate rents have dropped to £27.50 per sq ft (from £29.50 in 2024). However, take up increased with 55,000 sq ft transacted in total across 2025 (up from 42,500 sq ft). Demand remains healthy with refurbished high spec offices such as Bridge Gate, Redhill (39,000 sq ft) now ready to cater for this.
In Crawley & Gatwick top rents are at £38 per sq ft, level year-on-year. Take up increased significantly in the second half of 2025 to a total on 32,500 sq ft let (just 6,250 sq ft in H1). Logged demand dropped in the last quarter but remains positive for letting new available buildings such as the 42,000 sq ft The Create Building and the 16,122 sq ft Origin Two.
In Brighton & Hove, take up was down slightly year-on-year to 84,500 sq ft let in 2025. Rents remain level at £44 per sq ft and demand remains relatively high. A mixture of newly built office space, such as 10 Middle Street, and extensively refurbished offices – including Imperial House and Napier House – are now available to cater for demand.
SHW’s Q4 2026 Interactive South East Office Focus covers further regions including Central London; Kingston, Richmond, Putney & Wimbledon; Bromley; Burgess Hill & Haywards Heath; Horsham; Littlehampton, Bognor & Chichester Eastbourne, Hailsham & Polegate and Worthing & Lancing.
The report also includes Business Rates changes in each area.