The warning signs of lack of new development
Commercial property agents Michael Jones & Co. Ltd are warning of the continued shortage of available industrial property in the Worthing and surrounding region. Alarm bells have been ringing for some time now and they are calling on local authorities and speculative developers to attend to the situation as soon as possible.
The lack of new development coupled with the Governments introduction of Permitted Development Rights (PDR), allowing use class B8 of up to 500 sq m to convert into homes without the need for a planning application for a three year period, has helped fuel the shortage of supply.
Steve Berrett director of Michael Jones Commercial commented “Industrial occupiers have to really reconsider their requirements. When companies originally contact us they want to remain within 5 miles of their current site but they are having to look much further afield. Although demand continues industrial premises, there is merely not enough space to satisfy occupiers who need to expand or downsize or are approaching a lease event and may have been forced to relocate.
Steve also added “We are seeing companies forced out of Brighton & Hove city where industrial rents are reaching as high as £15 per sq ft in some cases, and this is pushing companies to locSet featured imageations such as Worthing, Horsham and Littlehampton”
The positive outcome is with landlords, this demand is pushing rents higher and reducing rental incentives on tenant negotiations. Tenants are less likely to relocate if they cannot find suitable premises and therefore look to negotiate a lease renewal. Estates that sit in locations in more rural areas such as Partridge Green, Billingshurst and Storrington are becoming more popular because of availability and rents are at less of a premium. Although landlords will shortly be looking to increase rents in these areas.
A case in point is the Rock Business Park located 10 miles north of Worthing in rural Washington where 27,000sq ft has just been let. Ten units have been let under Phase 1 with occupiers including Carillion PLC, Flute Office Supplies Limited, Baby Box Limited, Premier GT Ltd. UK IP Media & Events Ltd. & Elling of London Limited. Asking rents in excess of £8 per sq ft have been achieved on the estate.
Finally Steve commented “The warning signs have been coming and we are now reporting that there is virtually zero modern industrial stock left in Worthing. The overall situation is that there is desperate need for new estates to commence across the south coastal strip.”
Content accurate at time of publishing.