Southampton, Hampshire

Commercial Mortgages in Southampton

Led by Matt Lenzie, ex-Lloyds Bank and Bank of Scotland, we arrange commercial mortgages, bridging finance, and development finance for property professionals across Southampton and Hampshire.

£300M+
Capital Raised
48hrs
Decision Time
100+
Lender Panel
£245
Avg Price/sq ft
6.2%
Average Yield
+15.8%
5yr Price Growth
+10.8%
5yr Rental Growth

Investment Hotspot

6.2% average yield

Southampton stands out with above-average yields of 6.2%, making it one of the UK's most attractive commercial property markets for investors.

Why Choose CMB in Southampton

Direct relationships with executives and board members of the UK's leading lenders

Ex-Banking Background

Former Lloyds Bank and Bank of Scotland professionals who understand lender criteria inside-out

Board-Level Access

Direct relationships with lender decision-makers for faster approvals and better terms

£300M+ Track Record

Proven success arranging complex commercial property finance across the UK

Areas we cover:City CentreOcean VillageShirleyPortswoodWoolston

Southampton Local Market Intelligence

Major port city with two universities. Cruise industry driving hospitality demand. Strong student market.

— CMB Market Analysis

Key Industries

  • Maritime
  • Higher Education
  • Healthcare
  • Retail
  • Financial Services

Transport Links

  • Southampton Central mainline
  • Southampton Airport
  • Port of Southampton
  • M27 motorway

Regeneration

Watermark WestQuay; Royal Pier Waterfront; Mayflower Quarter

Southampton Commercial Property Market Data

Commercial Property Values in Southampton

Property TypePrime / Grade ASecondaryMarket Range
Office£21 psf£14 psf£14 - £21 psf
Retail / Shop£29 psf£19 psf£19 - £29 psf
Industrial£9 psf£4 psf£4 - £9 psf

Market estimates based on Q1 2026 regional benchmarking data. For accurate valuations, contact us for a detailed assessment.

Investment Yields in Southampton

Indicative gross yields. Actual returns depend on property condition, lease terms, and tenant covenant strength.

Southampton Market Trends

Office Vacancy
Falling
Industrial Demand
Moderate
Retail Footfall
Growing
Residential Investment
Moderate
Dominant sector:Office & Professional Services

Investor appetite for Southampton commercial property remains strong, with office & professional services assets attracting the most interest.

Southampton Commercial Districts

City Centre

Retail/Office

Prime Rent: £22-28 psf

Port of Southampton

Logistics/Maritime

Prime Rent: £8-12 psf

Ocean Village

Marina Mixed Use

Prime Rent: £18-24 psf

Southampton Science Park

R&D/Tech

Prime Rent: £25-32 psf

WestQuay

Major Retail

Prime Rent: £120-180 Zone A

Recent Commercial Property Transactions in Southampton

Representative transactions reflecting current market activity. Prices are guide values based on comparable evidence.

OfficeQ1 2026

Open-plan office suite with parking, Woolston

1,056 sq ft
£13,000 - £14,000
£13 psf6.7% yield
RetailQ1 2026

Corner retail unit with display frontage, Shirley

4,802 sq ft
£119,000 - £131,000
£26 psf6.8% yield
IndustrialQ1 2026

Modern industrial unit, trade estate

45,584 sq ft
£433,000 - £479,000
£10 psf4.9% yield
Care HomeQ1 2026

72-bed registered care home with gardens, Portswood

72 beds
£3,690,000 - £4,080,000
8.3% yield
Mixed-UseQ1 2026

Mixed-use building with commercial ground floor and residential above, Ocean Village

6,778 sq ft
£1,108,000 - £1,224,000
£172 psf7.1% yield
Development SiteQ1 2026

Development site with planning for 16 residential units, Woolston

16 units
£225,000 - £250,000
Residential BlockQ1 2026

18-unit purpose-built apartment block, Shirley

18 units
£3,635,000 - £4,020,000
6.6% yield

Market estimates based on Q1 2026 regional benchmarking. For accurate valuations, contact us.

University & Student Housing in Southampton

Universities

2 institutions · 40,000 students

  • University of Southampton
  • Solent University

HMO Hotspot Areas

Portswood (SO17)HighfieldBevois ValleySt Denys

HMO Licensing

Article 4 In Effect

Southampton operates Article 4 in key areas

Typical HMO Yield: 8-12%

Key Licensing Areas

PortswoodHighfieldBevois Valley

Two universities create strong HMO demand. Article 4 limits new conversions. Existing licensed HMOs premium.

Our Services in Southampton

Commercial Mortgages

Long-term financing for commercial and mixed-use property purchases, refinancing, and investment — tailored by experienced brokers who understand complex deal structures.

From £50,000Up to 75% LTV5-25 years

Commercial Bridging Finance

Fast, flexible short-term finance for commercial property transactions — decisions in 48 hours, completion in days, and creative structuring for deals that mainstream lenders will not touch.

From £50,000Up to 75% LTV1-18 months

Development Finance

Specialist funding for ground-up construction, major refurbishment, and mixed-use development projects — structured with staged drawdowns aligned to your build programme.

From £150,000Up to 75% LTV6-24 months
ML

Matt Lenzie

Founder & Principal Broker

With a career spanning Lloyds Bank, Bank of Scotland, and a partnership in a corporate finance business, Matt brings institutional-grade expertise to every deal in Southampton. Currently a board advisor to a pension administrator and trustee with £3.9bn of assets under advisory, Matt has raised over £300m of capital for property professionals across the UK.

View Full Profile

Why Southampton for Commercial Property Investment

Investment Highlights

  • Average commercial property yields of 6.2% across the local market
  • 15.8% property price growth over the past five years
  • 10.8% rental growth over five years supporting income returns
  • Strong occupier demand from Maritime and Higher Education sectors
  • Excellent transport connectivity including Southampton Central mainline
  • Active regeneration programmes driving future capital growth

Development Opportunities

Southampton presents development opportunities linked to Watermark WestQuay. Growing demand from the Maritime sector is creating opportunities for purpose-built commercial space and conversion projects. Strong transport links enhance viability for mixed-use and residential-led schemes.

Lender Appetite

Strong appetite across sectors. Maritime and student uses favoured.

Broker Notes

World's leading cruise port. Mayflower Quarter major regeneration. Two universities with 40,000+ students. Freeport status creating logistics opportunities. Strong maritime employment base. Article 4 in student areas.

Property Types We Finance

Port/Waterside CommercialIndustrial UnitsMedical/Dental PracticesCare HomesRetail UnitsHigh Street ShopsShopping CentresOffice Space

Our team has extensive experience in Hampshire property finance markets.

Why Invest in Southampton

Southampton is a major port city with strong maritime heritage, two universities, and diverse commercial property. The commercial property market benefits from strong demand across Maritime, Higher Education, Healthcare sectors, creating diverse occupier interest and reducing single-sector risk. With average yields of 6.2% and 15.8% price growth over five years, Southampton offers compelling returns for commercial property investors. Excellent connectivity via Southampton Central mainline supports tenant demand and underpins long-term property values. Ongoing regeneration activity, including Watermark WestQuay, further enhances the investment outlook and signals sustained public and private sector confidence.

Local Market Challenges

The Southampton market requires realistic expectations around liquidity and exit timelines for commercial assets. Secondary location pricing can be volatile, and investors benefit from strong local knowledge and established lender relationships.

Notable Developments

Southampton's commercial property landscape has been shaped by Watermark WestQuay. Growth in the Maritime sector has driven notable investment activity, with occupier demand supporting new development and refurbishment projects across the area.

Planning Context

Southampton falls under Hampshire planning authority, where the adopted local plan supports commercial development and economic growth. Planning decisions reflect a balance between heritage conservation and enabling new investment, with CIL charges and Section 106 contributions applying to larger schemes.

Latest Commercial Property News in Southampton

Commercial property news for Southampton will appear here once available. Check back soon for the latest market updates.

Southampton Commercial Mortgage Calculator

Pre-populated with local market data

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Southampton Location

Commercial mortgage services available across Southampton and surrounding areas. View larger map

Southampton Commercial Property FAQ

What is the average office rent per square foot in Southampton?

Office rents in Southampton range from approximately £14 per square foot for secondary space up to £21 per square foot for Grade A accommodation. Grade B office space, which represents the bulk of the market, typically commands around £17 per square foot. These figures are based on Q1 2026 regional market benchmarking.

What yields can investors expect from commercial property in Southampton?

Investment yields in Southampton vary by property type and grade. Current indicative yields are: offices at 6.06%-7.19%, retail at 7.13%-8.83%, industrial at 5.07%-6.99%, residential single-let at 6.83%, HMOs at 8.5%. Prime yields are typically lower, reflecting stronger covenant strength and location quality. Contact us for a detailed yield analysis for your target property type.

What types of commercial property are available in Southampton?

Southampton's commercial property market includes offices, retail units, industrial premises, residential investment blocks, care homes. We arrange finance across all commercial property types, from standard office and retail purchases to specialist assets requiring tailored lending solutions.

How much does a residential investment block cost in Southampton?

Residential investment blocks in Southampton typically trade at around £189,550 per unit, or approximately £260 per square foot. Blocks of 4-24 units are the most common size bracket for private investors. Yields for single-let apartments average 6.83%, with HMO conversions achieving up to 8.5%. We can arrange commercial mortgages for blocks of 4+ units through specialist BTL lenders.

What are HMO yields in Southampton?

HMO investments in Southampton can achieve yields of approximately 8.5%, compared to 6.83% for standard single-let properties. With 2 higher education institutions and approximately 40k students, Southampton has strong HMO demand. Note that HMO licensing requirements vary by local authority -- check Article 4 directions before purchasing.

What is the average price per bed for care homes in Southampton?

Care homes in Southampton typically trade at around £52,005 per registered bed. A typical 50-bed home would therefore be valued between £1.0m and £3.1m. Care home financing is specialist in nature and we work with lenders who understand the operational and regulatory requirements of the sector.

Ready to discuss your Southampton project?

Speak with our specialist team today and get a decision in principle within 48 hours.