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Commercial Property Register

June - October 2018

www.compropregister.com

11

FEATURE

The continuing loss of land for

industrial development is pushing

new schemes eastwards from

Greater London further into Kent.

That is the view of Glenny LLP

whose latest research shows the

challenge for industrial occupiers

across south east London and Kent

caused by the loss of 500 hectares

of industrial land in Greater London

between 2010-15 with a further

233 hectares expected to be lost

from 2016 to 2041.

The push eastwards, said Glenny,

is bringing the focuses on Belvedere,

Erith and Dartford.

“Dartford has always been a

favoured location for logistics due to

its close proximity to J1A of the M25

and the Dartford River Crossing

offering excellent communications”,

said Glenny.

Glenny said: “As with much of

the M25 corridor around London,

Dartford has seen rents continue to

rise as displacement from central

London radiates outwards and as

new stock is slow in coming forward,

further increases are expected. Rents

on the new schemes top out at

£156 a sq.metre (£14.50 a

sq.ft

.)”.

Glenny Managing Partner John

Bell commented: “The depth of the

demand for industrial space has

intensified over the past few years

and the dynamics of the market

have changed substantially.

Demand has been outstripping

supply for three years now and

rents have been driven up as a

consequence”.

Glenny’s Richard Seton-Clements

agrees and added: “We are

optimistic about activity for the

remainder of the year, with a

number of new industrial schemes

expected to be completed”.

This view is shared by Richard

Turnill of Watson Day, who said:

“Dartford is experiencing a strong

period of take up and rental levels

across the region have strengthened

over the past 36 months with both

prime and secondary rents on an

upward trend, largely driven by a

lack of stock”.

“Speculative development has

been a feature of the local market

in the past 24-36 months, with

schemes such as Questor 60 being

pre let and there will be further

development there over the next

18 months”.

He added that the supply of

good quality stock throughout north

west Kent is seriously limited and

there are no standing new buildings

available in Dartford.

Altus Group’s Peter Davidson

agrees that the main issue for the

Dartford market is lack of stock

across all size bands. He said:

“The majority of the institutionally

owned industrial estates have

been trading with very little void

and where units have come back

at lease expiry, they are very often

under offer prior to completion of

refurbishment works”.

Glenny notes that recent

development has focused on larger

logistics occupiers such as Berendsen

which has leased 8,640 sq.metes

(93,000

sq.ft

.) at Capacity where a

further unit of 6,782 sq.metres

(73,000

sq.ft

.) is to be developed

speculatively but the area is not

short of new schemes across the size

ranges.

Speculative development is due

to provide 74,320 sq.metres

(800,000

sq.ft

.) of new build

industrial units across eleven

schemes in the next twelve month

period. These range from the small

and medium sized units being

offered at Wrenbridge’s Quadron

Park and Chancerygate’s Panorama

development to the larger units

which will feature in Prologis’ The

Bridge, which should commence

later this year.

DARTFORD

shines

IN BRIEF

It

is a sign of optimism in Dartford that the Grade II listed Court House pub

in the town centre has been sold through Christie & Co to a local operator,

Yvonne Rickards. It has been closed for a number of years. James Hughes

of Christie said: “ We will now see this iconic pub re-open its doors with a

successful operator at the helm”.

The

largest industrial scheme in south east London and Kent, the 41,805

sq.metre (450,000

sq.ft

.) Belvedere Wharf is to be marketed by Savills,

Glenny and DTRE. The first building is complete and a further large site is on

offer on a build-to-suit- basis in the development by First Panattoni and

Savills Investment Management.

Capacity