The conundrum for industrial occupiers…
Tuesday, February 16, 2016 By George Dobson BSc (Hons) MRICS
Entering into the early stages of 2016, industrial occupiers have to reconsider their requirements, if they are to satisfy their business needs.
Although demand continues for Brighton & Hove industrial premises, there is merely not enough space to satisfy occupiers who need to expand or downsize or are approaching a lease event and may have been forced to relocate. These occupiers, although preferring to be and or already in Brighton & Hove, will be forced to assess their options and look further afield.
With rents on industrial space achieving quoting rents in excess of £14.00 per sq ft, this surely means that occupiers will be pushed into taking space in areas outside of the confines of the city.
The Governments introduction of Permitted Development Rights (PDR), allowing use class B8 of up to 500 sq m to convert into homes without the need for a planning application for a three year period, is likely again to give landowners the option to assess their assets current value compared to that of a change to residential, with some in the city likely to opt to change.
Locations such as Bolney, Mid-Sussex, Newhaven, Lewes, Woodingdean, Portslade and Shoreham will no doubt become more popular because of availability and rents at less of a premium than in Brighton & Hove. For landlords, with this increased demand and lack of supply, there is the opportunity to raise their rents in the future in these locations where rents have previously remained somewhat static.
If you have a requirement or are looking to dispose of warehouse space in the city or surrounding areas, please contact George Dobson BSc (Hons) MRICS at firstname.lastname@example.org or 01273 701070.