The shortage of top-quality office space is threatening to stymie Guildford’s growth, according to property consultancy Vail Willians.
The West Surrey town has been boosted by town centre regeneration schemes, as Luke Storey, part of the firm’s western corridor agency team, said Guildford is benefiting from ongoing mixed-use and residential developments.
However, limited prime office supply and rising occupier demand means rents will continue to rise until more stock becomes available.
Storey said: “Across Guildford and neighbouring Woking, office availability has fallen to 45% below the five-year average, with less than 250,000 sq ft available in total. In central Guildford, the squeeze is even tighter.
“There is very little new-build Grade A office space in Guildford’s pipeline, and much of the existing stock is dated and under pressure to modernise or convert. Prime office vacancy is now below 5%, with warnings that choice is becoming critically limited for businesses seeking well-located workspace.
“It is crucial that future schemes deliver modern office accommodation and the market will now look to whether further speculative office development can be unlocked to help alleviate the growing demand.”
Storey cited several key deals have which have underlined the strength of demand, particularly for well-located, modern, and sustainable office environments.
These include DTRE’s Grade A refurbishment of Bottle Works – the former site of milk giant Unigate’s depot – which is already 60% pre let and generating record rents, and Solum’s £150million Guildford Station Quarter project of 430 homes, 20,000 sq ft of office, complete with a new transport interchange, shops and public plaza.
Also, the former Debenhams site is now being redeveloped as the £125 million St Mary’s Wharf scheme which will deliver 183 riverside homes, new retail, and cafés overlooking the River Wey, and the North Street development is set to transform a neglected area through 477 sustainable homes, new public areas and facilities.
