BUILDING IN Basingstoke
A cautious assessment of the M3/M27 commercial property market has come from London Clancy but they note continued confidence from occupiers and investors in the region .
Mark Clancy said: “In 2017, the industrial and warehouse sector is likely to perform the strongest with steady demand from the increasingly varied logistics business and improving demand from manufacturers”.
In contrast, he notes the problems of offices as the supply shrinks due residential conversion.
“The exception will be new builds”, said Clancy, “where the continuing shortage of stock will push rents forward”.
This augurs well for the 5,574 sq.metres (60,000 sq.ft.) Florence office building being built speculatively at Basing View in Basingstoke and Kier Property’s 10,033 sq.metres (108,000 sq.ft.) Logistics City, also in Basingstoke.
As far as small properties are concerned, demand for freeholds from private investors and owner occupiers are keeping prices up.
An example of the success of smaller out of town schemes is Faraday Office Park, where Eskmuir Properties have agreed two lettings following their investment in 2016.
Richard Thomas of BDT incorporating Woodford & Co, joint agents on Faraday with Hollis Hockley, reported a strong start to the year in the office market, particularly for properties between 92.9 sq.metres (1,000 sq.ft.) and 464.5 sq.metres (5,000 sq.ft.).
Demolition has now started on the office building where Kier is developing Logistics City, which will have three warehouse/industrial units. The units, ranging in size from 2,050 sq.metres (22,064 sq.ft.) to 4,600 sq.metres (49,514 sq.ft.) will be available for sale or pre let in Q4 2017.
Kier’s Managing Director (South), Pip Prongué said: “This demolition shows our commitment to push forwardwith speculative development and provide new space in key locations. We continue to seek new opportunities in this market”.
Other deals recently in Basingstoke saw BDT incorporating Woodford & Co let three units in the Rutherford Centre and the same agent, together with Hollis Hockley, let 1,138 sq.metres (12,250 sq.ft.) in Hermes’ Loddon Centre to Loddon Power.