10 February 2020
Industry News, SHW News
Continuing political and economic uncertainty cast a cloud over the South East office and industrial/logistics markets last year with many locations recording their lowest take-up levels for at least five years, according to SHW’s latest Focus research. However, enquiries and viewings have started to rise following December’s general election and stock levels in some areas are improving, bringing relief to locations starved of new development. The research covers cities and towns stretching from London to the south coast.
Brighton offices continue to perform well with demand outweighing availability. Take-up last year, at 115,000 sq ft, was the highest for five years, bucking the general trend. U&I’s Circus Street development, due for completion in June, is expected to set a record rent of £35 per sq ft for its 30,000 sq ft of offices, with strong interest already being shown.
Croydon offices, by comparison, experienced their lowest take-up in 20 years in 2019, with a mere 11,500 sq ft absorbed. Most lettings were under 5,000 sq ft so too small to be included in SHW’s research; the average letting size of 4,000 sq ft was down from 15,000 sq ft a year earlier.
Nevertheless, building owners in Croydon who have invested in high-spec development are likely to be rewarded as occupiers show willing to pay higher rents for the best office space. Rents are forecast to rise from £33 to £38 per sq ft this year. The potential new build pipeline stands at circa 1 million sq ft although cautious landlords are awaiting pre-lets of at least 50% before starting on site.
Industrial/logistics take-up in Croydon, like Brighton offices, is also bucking the trend with continued good demand from occupiers, owners, investors and funds driving rental and capital growth. A much-required injection of new development space, totalling 500,000 sq ft, is poised to come to the market in the next two years, with both opportunities located on Beddington Lane.
However, SHW foresees Croydon industrial/logistics rents and yields levelling off in 2020 as the issue of tenant affordability creeps into discussions.
Despite increased availability of quality industrial/logistics space in Crawley last year due to new developments coming on stream, take-up, at 166,000 sq ft, was lower than predicted. The vacancy rate climbed from just 2% in June to 5.1% by December. SHW anticipates higher take-up this year and an uplift in rents to circa £14 per sq ft, assuming economic uncertainties are addressed.
The south coast industrial market is in urgent need of more stock. In Brighton, the scarcity of both new and second-hand buildings is impacting on demand with take-up falling to its lowest level for five years and relocating companies struggling to find anything suitable.
Requirements are being pushed along the coast from Brighton to Worthing and Littlehampton, although vacancy rates here are even lower than Brighton at 1-1.5%. A few major new developments may relieve the pressure with sites being released to the market in Worthing and a new scheme at Shoreham Airport receiving conditional planning consent for 269,000 sq ft.
SHW envisages the airport being the focus for industrial and logistics activity in this area over the coming years, with a likely ripple effect on surrounding towns.
Copies of SHW’s Offices Focus Q1 2020 and Industrial & Logistics Focus Q1 2020 are available on request.
5 August 2021
SHW TEAMS WITH REAL ESTATE CHARITIESfull story
29 July 2021
Q3 2021 Development Focus - NOW AVAILABLEfull story
28 July 2021
Q3 2021 Industrial & Logistics Focus - NOW AVAILABLEfull story
27 July 2021
Q3 2021 Office Focus - NOW AVAILABLEfull story
26 July 2021
Q3 2021 Retail Focus - NOW AVAILABLEfull story
6 May 2021
VEGAN MARKET A SELL-OUT FOR ASHFORD’S ELWICK PLACEfull story
4 May 2021
WORKING NINE TO FIVE DITCHED IN NEW OFFICE AGEfull story
22 April 2021
SHW GOES GREEN TO COMMEMORATE EARTH DAYfull story
24 March 2021
11 STAFF PROMOTIONS AT SHWfull story
9 February 2021
SHW appoints new managing partnerfull story
5 February 2021
LOGISTICS DRIVES DEMAND FOR SOUTH EAST INDUSTRIALfull story
17 December 2020
BRIGHTON PREPARES FOR A BRIGHTER FUTURE POST-COVIDfull story
10 December 2020
CRAWLEY CONTINUES TO FLY DESPITE PANDEMICfull story
20 March 2020
Expanded Retail Business Rates Discount Guidancefull story
8 March 2020
SHW celebrates greater diversity on International Women’s Dayfull story
28 January 2020
MIPIM 2020 – this year’s SHW delegation to Cannes.full story
12 December 2019
Local excellence - national expertisefull story
10 October 2019
SHW Regional Volunteer Daysfull story
4 October 2019
SHW Football Team reaches semi-final of Searls Land Football Tournamentfull story
2 September 2019
Lesley’s 35-year SHW journeyfull story
17 July 2019
Jonathan Laverock – a celebration of 30 years with SHWfull story
3 June 2019
New issue of SHOWCASE now outfull story
22 May 2019
Largest office letting in 2019 - Galleria - Crawley Town Centrefull story
29 April 2019
Be The Change Award Ceremony – SHW sponsored mentoring schemefull story
24 April 2019
SHW’s Easter bunny helped deliver fun for younger Newhall residentsfull story
23 April 2019
Nine promotions at SHWfull story
27 March 2019
Peter Turner – retiring from SHW after 38 yearsfull story
25 March 2019
Three new March starters for SHWfull story
25 March 2019
New office instructions - Bromleyfull story
6 March 2019
New Crawley home for SHW after 40 yearsfull story
4 March 2019
SHW team of four Sleep Out to tackle Croydon homelessnessfull story
28 February 2019
Mentoring tomorrow’s generationfull story
21 January 2019
MIPIM 2019 – this year’s delegation to Cannesfull story
8 January 2019
SHW new startersfull story