Headline office rents are growing across Hertfordshire, according to Lambert Smith Hampton’s latest quarterly UK Office Market Pulse.
During the 12 months to the end of June, Hemel Hempstead saw out-of-town prime headline rents rise 25% to £25.00 per sq ft, with Watford seeing a rise of 29% to £27.00 per sq ft. This makes these markets two of the fastest growing in the UK.
Rental growth is being driven by a lack of stock, with supply across Hertfordshire office markets falling 14% from the end of June 2015 to stand at 1.4m sq ft by the end of June 2016. This reflects the situation seen across much of the UK, with many markets suffering an ongoing shortage of good quality stock.
Across Hertfordshire office markets, we expect this lack of stock will mitigate any immediate uncertainty caused by the UK’s decision to leave the EU, and for occupier demand to remain steady against this backdrop of falling supply.
Tony Fisher, national head of office agency at Lambert Smith Hampton, commented: “Hertfordshire is a leading location for European and UK headquarters and hub operations, with over 900 international companies having a presence in the county, along with over 8,000 finance, consulting, accounting and legal firms.
“However, Hertfordshire continues to suffer from a lack of stock, which will continue to drive rental growth. New high quality space, such as 147,500 sq ft of newly refurbished space in The Maylands Building, Hemel Hempstead, will help to plug that gap, but in order for Hertfordshire to continue thriving as a business location, we need to see further office development.”