Realest: Industrial & Logistics Report January 2024
In this blog post Realest report on their recent industrial and logistics deals, availability, some properties coming soon and give a brief overview of the industrial market in the central South Coast of the UK.
2023 finished on a very positive note with three refurbished Logistics and Manufacturing buildings, Unit 1 Royal London Park (59,900 sq.ft), Unit 1 Strategic Park (68,431 sq.ft) and Unit 2 Strategic Park (58,419 sq.ft), all completing. Unit 1 is subject to planning change of use to B2. It was noticeable through the year that whilst a steady take up of space took place, the decision making of parties concerned, particularly occupiers slowed. This can be attributed to several factors including rising costs, labour shortages and uncertainty over micro and macro-economic factors. We see this continuing through 2024 with a pending general election on the horizon.
Nevertheless, the market fundamentals remain positive for take up and activity, with occupiers able to review their property options in the knowledge that should they wish to expand, contract, or relocate to similar sized space, there is better quality specification and energy efficient buildings available. This is testament to landlords who have recognised a gap in the market and provided superior quality refurbished or new build space. Overall, headline rental growth is expected to remain positive.
Quest 271, Southampton is completing construction in Q1, 2024. New trade counter units are under construction at Adanac Trade Park, Southampton. Graftongate is likely to commence a new build comprising 135,000 sq.ft at Nursling later this year. Along the M27, Kingsbridge Estates will commence a new development of 110,000 sq.ft warehouse/logistics scheme at Segensworth, off Junction 9. In addition, the nearby sale of Eaton Works comprising 24 acres will free up much needed land for new Industrial/Logistics development.
And finally in Portsmouth, Wrenbridge are constructing 7 brand new high quality industrial/logistics units of 5,479 – 35,220 sq.ft available in Summer 2024. The development of Langstone Park a 4 unit scheme by XLB comprising 25,484–101,665 sq.ft and Dunsbury Park by Portsmouth City Council are also both proving successful with 7 of the 9 units under offer or let, having completed Q4 2023 with headline rents at £12.00 psf.
You can view all of the commercial property listings available on NovaLoca here.
