24 Sep Soaring demand for industrial space in Thames Valley
The surging increase in online purchases and the need to deliver an ever-increasing volume of parcels is creating a crisis in the Thames Valley industrial market.
Rents have pushed through the £10/sq ft barrier, as reflected in Lambert Smith Hampton’s latest national industrial report, which singles out Slough as having the fastest-growing rents.
The report says industrial premises around the town have commanded a 30% increase in prime rents in the three years to the end of 2014, compared with an 11% increase in the South East generally and 25% for secondary property. This compares with an average increase in the South East of 18.1%.
The rising cost of land is also driving up rents, as is the shortage of buildings. Some Reading industrial agents put Slough industrial land prices as high as £2m/acre.
So what do the surging rents mean for occupiers looking for industrial space in the Thames Valley? And could the rising demand for industrial space impact on the development of offices in the area?
With the South East office market booming and demand continuing to rise for industrial space, the Thames Valley market seems set to continue its purple patch – the question now is whether developers can service the demand.
For full article from PropertyWeek please click here