THE industrial property market on the south coast has been ‘rejuvenated’ by an influx of high-quality premises that are further strengthening the region’s appeal for national and international businesses, reports Lambert Smith Hampton (LSH).
The firm’s South Coast Industrial Market Pulse report for Q2 shows that prime developments along the M27 Corridor are continuing to fill the market and attract significant interest. The majority of enquiries are for logistics warehousing, while LSH also reports an increase in enquiries from manufacturing.
The report cites a number of new Grade A developments coming to market, including 101,726sq ft at Velocity, Havant, and 91,000 sq ft at Merlin Park, Portsmouth.
The second quarter of 2018 saw transactional investment volume for LSH’s South Coast industrial team hitting about £100m. Significant occupational tenant transactions included Formaplex taking up 25,812 sq ft at Hazleton Interchange in Waterlooville, Anglian Windows Limited taking up 16,714 sq ft at the IO Centre Segensworth, and Phoenix Helicopter Academy taking up 6,394sq ft at Solent Airport.
The report sounds a warning note, however, around the availability of secondary stock, which has dropped to its lowest level since the third quarter of 2015. There is also now a real shortage of prime stock for smaller units, presenting a gap in the market for developers to satisfy. One success story bucking this trend is Glenmore Business Park, in Chichester, where 75 small business units have been built.
Adrian Whitfield, director of industrial and logistics at the south coast offices of LSH, said: ‘The long-awaited influx of prime stock is continuing to fill the market and providing occupiers with the Grade A stock they have been craving for. Finally being able to see the finished product, occupiers are committing to these schemes as they approach completion.
“With Grade A stock continuing to rise out of the ground, the result has been a rejuvenation of industrial stock on the south coast, reinforcing the region’s appeal for national and international occupiers, as well as local ones.
‘It all adds up to a positive outlook for the south coast as a place to invest as the regional economy remains buoyant amid the ongoing Brexit negotiations.’