• Chelmsford and Brentwood are Essex’s two largest office markets and have historically experienced strong occupier demand. These markets have performed well in 2018 with over 84,000 sq ft transacted. This has been driven by Sky leasing 39,490 sq ft at Stone Cross, Brentwood. Other occupiers who have been active in the market in 2018 include Taylor Wimpey and Create Business Hub.

• Supply continues to fall in the market and currently stands at 181,000 sq ft, the lack of large supply in the market has hindered take-up from further increasing.

• Permitted development rights have eroded stock levels in both markets. It is estimated that over 350,000 sq ft of office space has been converted to residential uses. Residential developers are seeking to take advantage of the rising residential values caused by the arrival of The Elizabeth Line. The erosion of supply in both these markets has resulted in steep rental growth. Record rents have been achieved in both Brentwood and Chelmsford in the last year.

• There are opportunities for investors and developers to refurbish existing stock and drive continued rental growth due to the lack of supply.

• Kings House, Brentwood which was recently refurbished, achieved a record rent for the market with £28.50 per sq ft being achieved on the vacant space. Savills expect prime rents to reach £32.00 per sq ft in Brentwood by 2020.

• Furthermore, the occupier demand for Grade A space was highlighted at Stone Cross, Brentwood which was let to Sky prior to works completing, highlighting the demand for Grade A space in the Brentwood market if it is available.

Search for a commercial property