We are on the edge of the country’s economic performance being undermined by a shortage of prime office and industrial space. It is hard to see how it will be avoided given the time frame of the shortage really biting and the developers starting to build. Agent after agent hammers over this point and while it will bring rationing by price, ie rent, it will have a widespread economic effect.
Ignoring the logic of the situation, the government will argue that the new planning guidelines will free up land for new schemes. This conveniently forgets that developers often have the sites and planning permission but do not want to put up a building that will attract rates while it is letting. If you want to get development moving then combine the new planning guidelines with bringing back rates relief. That applies strongly in the south west where there is an appetite for economic growth, particularly for industrial property.
Meanwhile, there are some interesting new developments that prove the point. In Dorchester, the development of Brewery Square is heading for a major success and
Peel has continued its waterborne developments with a scheme in
Gloucester. Both these prove that there is an appetite for development.