The economy of Southampton is now overwhelmingly based upon services with the dominant sectors being marine, higher education, health, retail and wholesale distribution, financial and business services, local and central government. The type of economic activity influences the level of demand for different kinds of accommodation.
Businesses seeking premises for industrial and warehouse use in Southampton search over an area that extends beyond the tightly drawn administrative boundary of the city to include Eastleigh, the southern part of Test Valley, the waterside parishes of the New Forest and the western part of Fareham. These areas have, over the last 30 years, delivered major industrial and warehousing opportunities such as the Chandlers Ford Industrial Estate, Marchwood Industrial Estate, Nursling and Segensworth.
It is estimated that at 2001 there was 216.76 ha of land allocated or with planning permission for industrial and warehousing use IN THE STUDY AREA of which 141.26 ha of land was generally available.
Southampton City Council is bringing forward land for industrial and warehousing development through the local plan process. Major proposals includes Test Lane (6 ha), the Vosper Thornycroft shipyard (up to 12 ha) and Drivers Wharf (up to 6 ha).
There is limited supply of land for office development within the city centre and some of the sites with existing, and in many cases historic permissions are under pressure for residential development. As a consequence, Southampton is experiencing relatively high rental values and the position of office developments on greenfield sites along the M27 is strengthened.
Even within the current market there is known to be continuing demand from Southampton businesses including the larger solicitors and for HQ purposes. The recent past has seen some significant enquiries from private and public sector occupiers from outside of the city and a continuing programme of city centre improvements will further increase the city�s attractiveness as an office location.