A councillor has said it is 'worrying' that offices at Eastleigh Borough Council's headquarters have laid empty for months.
The cash-strapped local authority has been trying to rent out one floor of Eastleigh House in a bid to make money.
The council – which is £566m in debt after borrowing – is using three of the four floors.
But the remaining space has been on the market since spring of 2023 but with no success.
Steve Broomfield, Conservative Cllr for Fair Oak and Horton Heath voiced his concerns at the news.
He said: “It just serves to illustrate that Eastleigh's property portfolio is a continuing worry to residents of the borough.
“With £500 million of debt, hearing this news is hardly confidence-boosting.”
At the Audit and Resources Committee held on September 24, the latest report on the property portfolio revealed there has been no interest from potential tenants.
This is because Eastleigh is ‘not attracting’ workers to the area, according to the report, adding: “There is greater uncertainty in the economy as a whole”.
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The rise in the number of people choosing to work flexibly has also had an impact.
A spokesperson from the council said one whole floor and part of another floor are no longer needed.
The council’s 220-property portfolio generates £16million annually, but finances remain on a knife’s edge as demand drops and interest rates spike.
The report reads: “There continues to be an element of ongoing risk and uncertainty relating to the economic and national political situation which could have a significant impact on future rental receipts from the council’s property portfolio.”
Industrial properties owned by the council are also struggling as leasing activity last year came in at around 2million sq ft.
This is a decrease on 2022’s 2.5million sq ft total.
There is a current vacancy rate of 4.1 per cent.
But the report also revealed the council successfully refinanced the office block it owns in Hove, Sussex.
The council is looking for a head of property for the site in Sussex.
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