News

2 October 2019

New industrial development set to unplug supply-starved Gatwick market

Industrial & Logistics


Over 300,000 sq ft of new speculative logistics and industrial space is to be developed in Crawley/Gatwick over the next 12 to 18 months, relieving a tightly constrained market. According to SHW’s latest logistics and industrial data for the South East, availability in the Crawley/Gatwick area fell to 207,000 sq ft by end of June 2019, representing just 2% of all built stock. As such, continuing strong interest from occupiers – particularly for units of over 20,000 sq ft - is being "frustrated, deflating take-up to 98,000 sq ft over the same period".



Two spec schemes are due to become available by the end of this year, 33,000 sq ft at Gatwick 33 and 170,000 sq ft at North Gatwick Gateway (site photo above), both by Goya Developments. Significant units at Link 23, Handcross, and St Modwen Park, Gatwick, are also in the pipeline.

 

“Lower stock levels in the Crawley/Gatwick area are reducing incentives and increasing rents, with £15 per sq ft now being quoted for pre-lets on new builds,” said Tim Hardwicke, Head of Agency at SHW. “Demand for sites from developers and investors therefore remains strong and the immediate pipeline is looking more robust. However, there are fewer options for spec development longer term when we may again encounter supply issues, especially as we expect even greater interest from occupiers once the Brexit shackles come off.”

There is a similar story in Horsham, which has over 500,000 sq ft of unsatisfied requirements, many of these comprising freehold owner/occupier demand from local companies seeking to expand. 31,500 sq ft was available in June, representing 1.6% of stock.


Take-up of 25,250 sq ft in the first six months would have been higher if more, better quality units were available.
Like Crawley, new stock is on its way in Horsham, with Tungsten Developments due to start on site shortly on 48,000 sq ft in three units at Tungsten Park and Dunmoore Group about to commence work on 50,000 sq ft at Billingshurst, with potential for 250,000 sq ft in Phase 2.

 

Among other take-outs of SHW’s South East Industrial & Logistics Focus Q3 2019 are:


· Croydon has the largest average deal and overall take-up – 11,750 sq ft and 172,500 sq ft respectively. Availability has slightly increased from 3.5% to 4.5%


· Chessington is the South M25 location with the most availability at 190,000 sq ft


· Rents have continued to increase in all locations across the South East monitored by SHW (south-west London to the south coast)


· Logistics is driving demand rather than light industrial

 

Contact:
Tim Hardwicke

thardwicke@shw.co.uk

01293 441305


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Tim Hardwicke

Business Space & Investment Agency

Partner (Head of Agency)

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