Lease Advisory Market Update
Tuesday 10 December 2024
Flude Property Consultants are delighted to share with you our most recent lease advisory update. Acting on behalf of both landlord and tenant clients, our dedicated professional services team have concluded a number of rent reviews, lease renewals and re-gears.
Over the recent past, there has been a well-documented lack of industrial and warehouse accommodation, built and available ‘to let’. However, a number of schemes have either been completed over the past 12 months, or are nearing completion, such as the Gatehouse Lane Estate at Goddards Green, Hassocks, Brighton City Logistics Park at Shoreham Airport and Chichester Business Park, amongst others. In our experience, whilst occupational demand for smaller units remains relatively consistent, we have seen rents soften in certain locations. In addition, investment yields have lengthened considerably, especially when compared with returns being sought throughout 2022, for example.
In terms of the retail sector, we have continued to see good levels of activity over the past quarter. In Chichester, there has been evidence of rental growth in the Prime pitches, following a number of recent lettings. Notably, these include the relocation of Holland & Barrett to 14-15 East Street, and the letting of 93 East Street. Demand in Brighton’s bohemian North Laine District also remains steady, whilst rent rebasing continues to be apparent in the more traditional high street locations. Retail units on smaller secondary & tertiary parades in the greater Brighton area remain in good demand and short supply, the smaller lot size adding to their resilience. As per our last update, it is still self-evident that retailers are continuing to take advantage of re-based rents, by relocating to more prominent/desirable retail pitches within the respective locations. The recently announced changes to NIC and minimum wage requirements are also likely to have an impact on the retail and leisure market in the coming months and years. It is too soon to determine the impact (if any) the reduction in the retail business rates relief will have across the sector, but this is likely to remain a cause of concern for retailers.
The Brighton office market remains buoyant, but with an ever-widening gap between Grade A fully fitted office rates per sq ft, and that of more traditional secondary office space. The headline rents at the top of the market continue to edge forward, with rents on secondary office space remaining static. There is presently an oversupply of secondary office space in the central Brighton market, and as such occupiers have a greater selection to choose from. Thus, limiting the ability for landlords to demonstrate growth in secondary buildings.
Click on the link below to view our market update flyer.
