Demand Outstripping Supply In The Industrial Sector
A critical shortage in the availability of industrial space across England, and in particular the South East is threatening to stall the growth of businesses, reports Michael Jones Commercial.
Occupiers are being left frustrated by the lack of stock which is having a negative impact on many businesses throughout the UK as they are not able to grow efficiently under one roof. Medium-sized companies are not having the opportunity to upgrade to bigger units, and this in turn is then not freeing up the smaller side of the market to allow newer businesses to start to trade or expand from domestic premises to commercial units.
Since its inception in 2008, the firm is seeing record take-up levels in the industrial sector. This combined with a slowdown in speculative development means that available units are at a premium across West & East Sussex. For example in Worthing, West Sussex there has been no large commercial development for over 20 years. Surrounding areas have seen some developments like Rock Business Park, Washington and Glenmore Business Park, Chichester which has flourished and becomes fully let or sold before practical completion has taken place.
One of the challenges regularly faced in protecting commercial land against the encroachment of residential development.
In January alone Michael Jones Commercial let over 25,000 Sq Ft of B1/B2 & B8 space and had stock levels allowed, that figure could easily have doubled. The firm is seeing its lowest stock levels in a decade and is actively looking for new stock for waiting applicants.
Jon Justice, Commercial Partner at Michael Jones commented “The market trends of late 2020 which were accelerated by the pandemic have continued to drive demand during the first couple of months of 2021. Robust take-up within the West Sussex area is fast eroding existing supply, and we are now facing a shortage of suitable accommodation from 1,000 – 5,000 Sq Ft. Speculative development has slowed although we are aware of a handful of developments that are due before planners in 2021, it’s likely in the short term that the current imbalance could persist.
In the last week alone we have let two units without the need for full marketing to waiting applicants. The clients have been delighted that not only are they going to have a limited void period and rent coming in sooner than they envisaged they have also been delighted that we kept to our promise of securing them a Tenant within a quick timescale.”
If you are a Landowner and feel you may have some land suitable for commercial development, a Landlord with a vacant or soon to be vacant industrial unit that needs one of our waiting applicants to move in or an existing Tenant looking to sub-let or assign your lease, then Michael Jones Commercial would love to hear from you.
If you require our expert advice or would like to discuss your own requirements and how we might be able to help, please contact our commercial team on 01903 201212 or send an email to firstname.lastname@example.org
Content accurate at time of publishing.