Basingstoke is facing a dearth of supply in the small industrial unit sector. bdt have a growing applicant list for industrial or storage units of up to 2,500 sq ft once again, but there is extremely limited supply. The same problem is being faced by other surveyors across the town.
We ourselves have seen recent transactions at;
Rental levels, as a result of the imbalance between supply and demand are moving at some pace again, certainly now exceeding £8.00 / £8.50 per sq ft, and in the case of the Basingstoke Business Centre, a recent letting has reflected just shy of £12.00 per sq ft (albeit this scheme offers potential as a small retail trade park).
It is imperative for the good of the local economy that new units are constructed to meet continued demand and to satisfy requirements from start-up and small businesses, who, after all, are the ‘seedbed growth’ for the future. Quite whether any speculative development will materialise, however, is open to conjecture. Development opportunities are rare in the town and mainstream developers have a tendency to prefer to build mid to large range units which attract the attention of “safer” tenants. Furthermore, construction costs have soared again, and the Council’s continued policy towards long leasehold land as opposed to freehold sales, continues to be eyed sceptically by the development and institutional funding markets.
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Contact for further information:
Baker Davidson Thomas
Telephone: 01256 840 777
28th September 2015