The South East Industrial Market: Update
As the region’s leading commercial property consultancy, Kirkby Diamond has its finger on the pulse when it comes to the industrial market across Bedfordshire, Buckinghamshire and Hertfordshire.
There has been an influx of enquiries on a range of properties and many companies are moving from London up the M1/A1 corridor where they find better value for money.
Eamon Kennedy
Eamon Kennedy and Paul Quy of the Industrial & Logistics team at Kirkby Diamond take a look at the current market conditions:
Milton Keynes is seeing a continuous rise of start-ups and SME businesses taking up units, most for manufacturing/production, as opposed to straightforward warehousing that was seen post-covid.
An example of this, is that two companies have recently taken units of circa 6,500 sq ft each at Tilstone/Warehouse REIT’s Bradwell Abbey Industrial Estate, and since the start of this year 426,000 sq ft of industrial units* have transacted across the city.
Eamon highlights a significant increase in activity in the mid-box market which is thriving in the region. A combination of pent-up demand and a lack of supply has led to a spate of lettings and acquisitions particularly along the A1M/M1 Corridor.
In just a few weeks, we completed several mid-box deals; acquiring a 55,000 sq ft unit in Milton Keynes for an engineering company, a 53,000 sq ft unit for a kitchen and bathroom distributor in Leighton Buzzard, and a 39,000 sq ft letting at Stratus Park, Milton Keynes, for a storage distribution company. Other recent transactions in the market include a food production company
Paul Quy
taking a 90,000 sq ft new build unit in Dunstable, and two 30,000 sq ft units taken in Bedford. Demand for mid-box units continues to outstrip supply.
There is also evidence that companies are becoming footloose when it comes to a desired location. We are receiving enquiries from companies in East and North London, where, by moving up the M1/ A1 corridors, overheads can be substantially decreased despite securing brand-new units with benefits such as excellent ESG credentials and construction warranties.
This can be seen in PLP’s speculatively built 1.06 million sq ft scheme at South Caldecotte, Milton Keynes, where Huel and Kegstar have taken up 70,000 sq ft and 140,000 sq ft respectively, and a further 1.1 million sq ft is available for future development as part of Phase 2.
As we look ahead to 2025, the outlook is positive and we are confident that high demand for new and refurbished secondary stock will continue. The increasing pipeline of new developments will attract even more businesses to relocate to the region, where they can find better value for money. The question remains whether supply will catch up with demand.
Eamon Kennedy 07887 835 815
Eamon.Kennedy@
kirkbydiamond.co.uk Paul Quy
07917 268 653
Paul.Quy@kirkbydiamond.co.uk www.kirkbydiamond.co.uk.
*Source: EG Radius
Welwyn Hatfield - Has Much to Offer Businesses and Visitors
With a population of around 120,000, Welwyn Hatfield is located in central Hertfordshire, just off the A1(M) motorway and only 25 minutes by train from Central London.
Welwyn Hatfield
is a diverse Borough with two district town centres – Welwyn Garden City and Hatfield. Many major businesses are based in the Borough, including the headquarters of Tesco and Ocado. According to a recent report from research specialists Beauhurst, Welwyn Hatfield was 2nd for business growth in the UK.
The University of Hertfordshire in Hatfield is famous for its strong ties with industry, attracting students from around the world for courses in business, engineering and computer science. The University of London’s Royal Veterinary College also has a campus in the Borough and is ranked number 1 globally for Veterinary Science.
Welwyn Garden City and Hatfield town centres have benefited from multi-million-pound regeneration programmes led by Welwyn Hatfield Borough Council (WHBC). In September 2024, the Council launched the early engagement stage for its New Local Plan which will set out how the Borough will grow over the next 15 years and beyond.
Welwyn Garden City was the world’s second garden city and is unique for being both a garden city and a new town. Hatfield was crowned London’s second-best commuter town by property expert and TV presenter Phil Spencer, for its mix of countryside living, affordable housing and excellent transport links. WHBC’s
COMMERCIAL PROPERTY MONTHLY 2024
commitment to building high-quality social housing saw it rise to the top ranked English local authority in 2023-24 for social rented completions outside of London according to Inside Housing Magazine. WHBC completed 159 homes last year, 139 of which were added to the Council’s stock of socially rented properties, with the remaining 20 being used by the Council as temporary accommodation for families in urgent need. Many of the new homes are designed and built to support the Borough’s climate pledge of being net zero by 2050.
In September 2023, the Council opened its One Town Centre development in Hatfield, a landmark housing and commercial development that has transformed the town centre and created a vibrant and attractive destination for residents and visitors. The One Town Centre development builds on the success of other projects in Hatfield Town Centre including the stunning transformation of White Lion Square, the innovative design and construction of the award-winning Common Multi Storey Car Park, projects that were made possible by the support from Hertfordshire Futures (previously known as Hertfordshire Local Enterprise Partnership) and Homes England. The next step in this programme will be to rejuvenate Market Place, a key public square within the town centre.
Welwyn Hatfield has much to offer its residents, businesses and visitors and with WHBC leading the way through its regeneration programmes, the Borough looks set to remain an attractive location for many years to come.
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