1 February 2025
OVERALL TAKE UP EXCEEDS EXPECTATION ACROSS THE SOUTH EAST INDUSTRIAL MARKET
Business Rates, Business Space, Commercial, ESG & Sustainability, Industrial & Logistics, Industry News, SHW News
Over 5 million sq ft of lease events scheduled over the next 18 months.
Following a dramatic fall in take up in the first half of 2024 (56% down), 2024 came to a close looking largely better than expected at just 22% down on the previous year, according to SHW’s Q1 2025 South East Industrial & Logistics Focus, demonstrative of decisions being made as the new government takes hold and the Autumn Budget changes become clearer.
Rental levels have broadly remained level across the South East industrial market, with an uptick in availability across most areas with a number of second hand units coming back to the market but also more high-quality newbuild options which occupiers are navigating towards also coming forward.
Tim Hardwicke, SHW’s Partner and Head of Agency, comments: “Take up was down in 2024, which was to be expected in a year that saw a new government and a radical budget announcement. However, with a clearer future, interest rates stabilising, investor appetite and over 5 million sq ft of lease events scheduled across the South East over the next 18 months – recorded on SHW’s exclusive database - we expect transactions to increase this year, bringing them back up to average levels.”
ESG remains important for occupiers and investors alike. Green buildings with lower running costs remain attractive for occupiers, and developer appetite for sites for new build is still high, with many speculative schemes going ahead to cater for the demand in stock.
Tim adds: “A good indicator for the year ahead lies with Panattoni’s confidence in speculative industrial/logistics development across areas such as Burgess Hill, Brighton and Crawley. With two lettings just completed in Burgess Hill and good interest in the Brighton scheme, Panattoni has now purchased another site on the Sussex coast for further speculative development, showing demand for new, quality, sustainable stock is very much alive.
“Others also have confidence in the South East such as Goya Developments and Dunmore - who have speculative developments in Billingshurst – along with GLI in Croydon and Prologis in Beddington.”
For more information and copy of the SHW Q1 2025 South East Industrial & Logistics Focus, please contact any member of the SHW team.
