The South East


South Coasts Award Winning Industrial and Logistics Market Highlights


Dan Rawlings & Elise Evans, Directors within multi award winning LSH Industrial & Logistics South Coast team with six dedicated occupational and investment agents covering multiple regions comment as follows:


Dan Rawlings: The Market has seen longer voids than has been experienced since the pandemic, with occupiers taking longer to make decisions as shown with a slow start to H1 2024, but signs are that the next two quarters are looking more promising, with plenty of signs pointing towards a more sustained recovery.


Rising land values, steady rental growth and growing occupier demand should give rise to more positive trading activity during the latter part of 2024 and early into 2025.


Changes on the South Coast I&L market include a strong uptick in supply, due to new prime sites being constructed and secondary buildings becoming available. Take up appears more in line with 2022 which had a busy Q4, with less larger transactions and more activity in the small and mid-box market.


There is strong interest in the prime development space coming forward, highlights in Southampton which are tailor made for current occupier demands in terms of height, yard depth and ESG credentials include: RLAM and Salmon Property 3x unit grade A scheme at Quest 271, Nursling, 44,400 sq ft – 95,645 sq ft, Nursling 135, Nursling a single net carbon zero warehouse of 135,280 sq ft by Bridges Fund Management and Graftongate and Adanac Trade Park, Nursling, the next phase by Oceanic Estates, a 21 unit multi let prominent warehouse/trade counter scheme.


Elise Evans : With the result of the general election now established and a change of government in place as expected. We do not expect to see any notable changes


to occupier activity with most companies and investors already factoring this change into any business plan.


Enquiry levels are relatively strong, which is encouraging and are back to pre-pandemic levels, albeit requirements are in the market longer with occupiers carrying out more due diligence, prolonging the decision-making process.


There is a continued demand for the most ESG compliant space, along with growing demand from the EV industry, supermarkets and 3PL operators and the rumoured return of fulfilment companies into the fray, is likely to drive further leasing activity and rental growth during 2024.


With the reduction in interest rates by 0.25% to 5%, the first reduction since March 2020, the expectation is that we could see further reductions in H2 2024, we expect the impact of this will increase occupier confidence.


The strength of the second hand and the prime/new build market has given developers confidence to continue speculative development.


Wrenbridge will complete their speculative development, Sonar, in Portsmouth, imminently which comprises 7 units ranging from 5,000 sq ft to 35,220 sq ft. Kingsbridge are on schedule to complete their development of Ferne Park, Barnes Wallis Road in Segensworth in March 2025, creating a three-unit industrial scheme totalling 106,688 sq ft and targeting the first BREEAM Outstanding scheme in the region. Panattoni speculatively built out circa 500,000sqft at Burgess Hill which completed in April.


Please contact Dan Rawlings 07702 809192 or Elise Evans 07703 393120


www.lsh.co.uk


Gosport Historic Buildings Earmarked for Redevelopment for Maritime Employment Space increase


Gosport has played a central role in the nation’s defence for more than 400 years. As the size of the Royal Navy has reduced in recent decades, many prime waterfront sites have become available for regeneration.


These represent unique growth opportunities for the maritime sector thanks to the existing location, infrastructure and pool of employees.


However, some of these sites are complex and costly to renovate and bring back into use; that’s where public- private partnerships become key.


The Rum Store building at Royal Clarence Yard on Gosport’s waterfront was built in 1758 to house the entire Royal Navy’s rum rations. Since falling into disuse, this Grade II listed building has become derelict.


Thanks to £11m of Government funding, matched by the site owner UK Docks, moves are afoot to restore and bring it back into use. This is part of a wider £30m regeneration programme over the next few years, which will see:


• •


Renovation of the 6,890sqm Rum Store to provide new mixed-use space, centred around the maritime sector.


Public realm improvements to the coastal route to footfall and economic activity


along


the


route, while celebrating the town’s heritage through public art, interpretation and infrastructure.


The first phase, scheduled for completion in 2026, will see the Rum Store provide workshops, office space and retail units for a range of maritime businesses such as sailmakers, chandleries, naval architects, yacht brokers, and maritime training providers. The remaining units will be used for retail and hospitality - including a rooftop restaurant and bar with an open-air terrace.


The programme is expected to generate up to 200 jobs and an £11m annual boost for the local economy.


Ben Mason, UK Docks’ Portfolio Manager, said:


“This project is going to provide huge opportunities for Gosport residents and businesses and reinvigorate a disused historic building. It’s great for everyone but we couldn’t do it on our own.


“Working with Gosport Borough Council has given us access to government funding and helped unlock solutions to problems that were bigger than just our site, such as local infrastructure. The council has big plans for regeneration in the borough and we’re delighted to be a partner in that.”


32


COMMERCIAL PROPERTY MONTHLY 2024


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82