Despite the rather uncertain economic news from China and the forthcoming referendum on Europe, the continued growth in the industrial and warehousing markets and unsatisfied occupier requirements remaining from 2015, provide indications that 2016 will be another buoyant year for the this particular sector of the commercial property market.
Furthermore, the lack of supply of industrial and warehousing space in the Basingstoke market is now beginning to impact on all sizes ranges, not just the smaller end.
There remains strong business confidence as a result of improved economic growth. Combine this with an ‘illiquid’ planning system, a focus on the residential market and a general lack of development, it is perhaps not surprising that the overall availability has diminished to around 300,000 – 350,000 sq ft according to BDT calculations.
One of the inevitable consequences of the squeeze on supply is the likelihood of a rise in the rental tone. Agents are now widely tipping the prospects for the £9.00 per sq ft mark to be superseded for any new product, not just for small units, but across all size ranges. The key will be to try and match occupier requirements with the timing for new development, and the latter is already a pretty distance ‘second’.
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Contact for further details:
BDT incorporating Woodford and Company
Telephone: 01256 840777