Despite the uncertainties and frustrations surrounding the Brexit ‘deal’, or lack of it, the Basingstoke Commercial property market has held up well throughout 2018.

In the Office sector, major transactions have been concluded with:

• Vision RT Ltd – leasing 32,700 sq ft on Viables Business Park.
• Vyaire Medical – leasing 49,250 sq ft at Chineham Park.
• Lilly Industries – signing up to a prelet for c.45,000 sq ft on Basing View.
• Yorktel & Cirrus Logistics expanding within Chineham Park.
• Arena Business Centres putting their faith in the fast moving serviced office sector by way of a recent exchange of contracts to purchase their second building on Basing View in the form of the 37,500 sq ft Quantum House.
• Developers are also in the process of completing a purchase of the Listed Mountbatten House on Basing View, with early indications that they intend to refurbish (rather than convert) the 126,000 sq ft of vacant space in the building.

The latter transaction rather ‘skews’ the overall take up figure of 385,820 sq ft – some 52% of this total reflects genuine Occupier take up in either lettings or sales.

Separately, the market for Permitted Development conversion opportunities may have ‘cooled’ a little, perhaps with specialist PD developers recognising that there are now a considerable number of apartments and flats in the pipeline at a time when the housing sector appears to have slowed.  Nevertheless, an extra 143,000 sq ft of office space has been sold for conversion this year, of which the ex-Shire Pharmaceuticals building comprised 81,000 sq ft.

The local Industrial/Warehouse market continues to show resilience and has been the best performing sector in Basingstoke in recent years.  It is arguable that take up figures could, and would, have been higher had the supply of ‘sheds’ been more widespread.  We are aware of a handful of prospective moves having been thwarted due to a lack of appropriate availability.

The principal transactions that have been completed include:

• Leverton Ltd expanding into 45,000 sq ft in Houndmills Central.
• UL’s well publicised expansion at Horizon on Kingsland Business Park, comprising 38,000 sq ft.
• Capricorn Automotive committing to 21,000 sq ft, also on Kingsland.
• Evalve Ltd completing an expansion from a unit of 4,000 sq ft into 18,000 sq ft at The Loddon Centre.

We estimate total take up in this sector this year to have been c.300,000 sq ft. Supply levels remain limited for now, particularly at either end of the size spectrum, but reassuringly, two or three developers have increasing ambitions towards speculative developments if they can either secure freehold land or re-gear long leaseholds held with the Council, on fundable terms.

As for 2019 … potentially the most unpredictable year for a decade in the property sector, but we love a challenge!

–  ENDS  –

Contact for further information:

Richard Thomas
Baker Davidson Thomas
E-mail:  richard.thomas@bdt.uk.com

Telephone:  01256 840 777

January 2019