Office and industrial space in Swindon at a five year low
Office and industrial space in Swindon is at a five year low as the economy bounces back, according to report by commercial property consultants Alder King.
The Market Monitor report suggests that in line with other large towns and cities in the South West, Swindon is experiencing a five year low in accommodation supply, meaning businesses looking to grow or relocate have nowhere to go.
The report shows that following a 2010 high for demand for office space (205,000 sq ft), demand plummeted to 85,000 sq ft in 2011. This has been gradually rising, and in 2013 was back to 199,000 sq ft.
However, over the same period supply began to fall – from 1,320,000 sq ft in 2011 to just 1,020,000 sq feet in 2013.
Meanwhile rents in the office sector have risen slightly from their 2011 low. Headline rent per sq ft is now £15 in the town centre, and £17.50 out of town, up from £16 per sq ft in 2012.
“There was a gradual reduction in good quality accommodation with no brand new office space currently available out of town, and no speculative development,” noted the report’s author, James Gregory.
In the industrial sector, meanwhile, supply fell from a 2011 peak of 2,625,000 sq ft to 1,800,000 sq ft. But demand also fell, from 1,823,000 sq ft in 2011 to 986,000 sq ft in 2013.
Rents stayed steady. For the fifth year in a row the average rent per sq ft was £6.75.
“There is now a real shortage of large buildings available for immediate occupation with the need to bring forward deliverable development becoming urgent,” noted James. “There are very few good quality opportunities for the mid-range occupier, and the supply of all sizes has steadily been eroded.”
The full report is available to download at http://www.alderking.com/media/121375/FINAL-Market-Monitor-2014-Web.pdf