Global uncertainty stalls occupier moves in H1 across the South East Office market
Global uncertainty has stalled larger occupier moves, resulting in low levels of take up across the South East office market in the first half of the year, according to SHW’s Q3 2026 South East Office Focus. However, despite global events, H2 is showing signs of confidence with notable agreements for lease signed and unsatisfied occupier requirements still to fulfil.
Take up over 5,000 sq ft – the minimum size in which the Focus report starts to track data – has been slow to date across most centres in the South East, with sub-5,000 sq ft deals making up a large proportion of transactions. Tim Hardwicke, SHW’s Partner and Head of Agency, comments: “In this size range we have seen a trend towards occupiers seeking fitted space in order to get away from high initial set-up costs.
“The outlook at the beginning of the year was more positive with several buildings under offer, however events across the world have knocked occupier confidence and although the ‘flight to quality’ continues, with companies looking for best quality space for their staff, it is taking longer for decisions to be made.”
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 becoming harder to secure.
Croydon is demonstrating the trend for smaller transactions, with just 13,000 sq ft completed over the 5,000 sq ft level so far this year. Rents remain level at £36.50 per sq ft achieved, with highest quoting rents at £41 per sq ft. Availability is just under 500,000 sq ft, with demand around three times this amount.
In Epsom & Leatherhead, take up figures are encouraging at 21,500 sq ft transacted (over 5,000 sq ft) so far this year, compared with a total of 32,000 sq ft for the whole of 2025. However, these figures are still a long way off 2023 levels (87,600 sq ft). Logged demand is twice that of availability, which has pushed rents up to £31 per sq ft achieved (up from £29.50 per sq over the last two years).
In Guildford, rents have remained level at £50 per sq ft achieved this year, however, take up is some way off 2025 levels (90,581 sq ft) which just 12,929 transacted this year. Demand is triple that of availability (1.4m sq ft / 373,750 sq ft). Tempus Court in central Guildford is one option for occupiers looking for ‘plug and play’.
The Crawley Gatwick area is showing more positive signs. Although rents have dropped slightly to £37.50 per sq ft achieved – level with the highest quoting rent – take up is already double that of 2025 at 63,250 sq ft transacted (32,500 sq ft total in 2025), edging back up to levels seen across 2022 to 2024. Options for Grade A new and refurbished buildings include St John’s House, The Create Building and Portland, 25 High Street in Crawley, offering space ranging from 3,090 to 41,966 sq ft, along with 2 City Place providing 10,580 to 23,942 sq ft adjacent to Gatwick Airport.
In Brighton & Hove, a mixture of newly refurbished space, including Napier House, 10 Middle Street, Imperial House and Queens Road Quadrant are catering for a range of occupiers with options between 1,954 to 35,833 sq ft. While rents remain level at £44 per sq ft, the highest quoting rent is around £50 per sq ft and take up is slow so far with just 12,000 sq ft transacted above the 5,000 sq ft level. However, with agreements for lease signed on two lettings of circa. 18,000 sq ft at Brighton’s Sovereign House, signs of confidence are returning which could push rents on before the end of the year.
In the smaller market of Eastbourne and the surrounding areas, while rents have dropped to £13.50 per sq ft (£15 psf in 2025), take up has almost doubled that of the whole of 2025 this year to date, leaving only 12,000 sq ft available, with demand at around 400,000 sq ft. Ivy House has just 1,237 sq ft available and Sovereign Harbour, Eastbourne is providing a serviced office offering.
SHW’s Q3 2026 Interactive South East Office Focus covers further regions including Central London; Kent; Kingston, Woking; Richmond, Putney & Wimbledon; Blackwater Valley; Bromley; Burgess Hill & Haywards Heath; Redhill & Reigate; Horsham; Littlehampton, Bognor & Chichester and Worthing & Lancing.
The report also includes Business Rates changes in each area.