This year's JLL South Coast Metropole breakfast seminar, the 20th in the series, was hosted at St Mary's Stadium, Southampton on the 2nd of October 2015.
The event, which was attended by over 100 real estate decision makers from the South Coast Metropole area, gave insight from JLL on issues that will affect the Metropole economy and the opportunity to listen to predictions for the South Coast in 2016.
Our experts discuss the South Coast Metropole market for 2016.
Head of UK Research
"The UK’s economy appears to be on an even keel, with only moderate risks to a picture of low inflation and steady growth. Productivity and wages- which remained stubbornly flat until recently are now on the rise. However, the global economy has looked increasingly fragile over the last year. Global growth, according to our forecasters Oxford Economics, is likely to fall from 2.7% in 2014 to 2.5% this year, before nudging up slightly to 2.9% in 2016."
"Southampton has a unique opportunity now to capitalise on this period of relative political and economic stability. New developments are now underway that will change the shape of the city and inject new life into it, and attracting major players from the Capital will play an important part in fulfilling this ambition."
DirectorPlanning & Development
"In general, development continues apace in the major urban areas in the region, evidencing a return to confidence across most sectors. Many local authorities in the region are adopting a pragmatic approach to development. The buoyancy in the residential market continues with a switch from immediate sites to strategic planning for many house builders. Confidence in the retail sector is high and new industrial units are starting to come forward. The impact of the Government’s drive for brownfield development will start to take shape in the autumn which, no doubt, will have an interesting impact on the market and it remains to be seen how Councils will deal with the zonal approach."
Associate Director Business Space
"The office market has changed significantly over the last 12 months. Take up has increased by 18% and rents have increased by £1.50 per sq ft - £4.00 per sq ft throughout the metropole region, with prime rents in Southampton achieving £19.50 per sq ft. The industrial market continues to outperform the office and retail sectors in regards to take up and prime rents are achieving £8.50 per sq ft.
With limited quality office and industrial, it is imperative for landlords to be offering the right refurbished quality product, in order to attract occupiers. At the same time, occupiers need to seek the right advice to avoid overpaying and agreeing to terms that do not match their operational requirements. The metropole region should benefit from further capital growth in the next 12 months as the market gradually responds to the robust economic backdrop."
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View the South Coast Metropole report
View our press release on the South Coast Metropole breakfast event
Find out more about our Southampton office here.
L-R: David Ramsay, Michael Green and Nella Pang (Emma Eaglestone and Jon Neale also spoke)