TBC
Hellier Langston M27 Industrial and Warehouse Review by Matthew Poplett BA (Hons) MRICS, Director, Hellier Langston, Southampton.
With the first 8 months of 2024 well and truly behind use and everyone dreaming of their next summer holiday in 2025, what has happened and what is happening in the M27 warehouse and industrial market I hear you ask?
The last 8 months have been tricky to say the least with the macroeconomic fall-out of the national and global financial uncertainties, wars in Ukraine and Gaza and inflation/energy cost pressures all unsettling the UK and regional economies over the past 18 months.
The big questions are, will inflation stabilise at 2%, or will we see another rise towards the end of 2024 and if inflation does remain steady, will interest rates drop again prior to Christmas this year? Let us also not forget that there is a new labour government budget due in the autumn with speculation around tax rises to fund crumbling public services. Despite these external macro & meso-economic pressures, the good news for landlords in the South Coast Industrial and Logistics sector is that we are still experiencing an overall lack of supply of good quality stock and demand from occupiers remains steady, so rents have continued to rise.
One of the major factors helping The South Coast to beat against these macro & meso-economic headwinds is the broad range of industries that are located here, from those associated with the ports to defence, automotive, aerospace, contact lens manufacture and laser technology industries. This diverse and high-tech economy supported by world leading higher education facilities such as the University of Southampton helps make the region more resilient to external shocks and has provided developers confidence to continue building new industrial and logistics facilities with excellent ESG credentials.
The highlights of the year so far have been Coopervision signing up to a design and build R&D facility at Adanac Park Southampton of 107,000 sq
UNIT 5 TO LET
A34 A338 ANDOVER A303 8 A3 9 A31
LARGE SECURE YARD
M3 GUILDFORD M3 A36 M27 A31
NEW FOREST NATIONAL PARK
3 4 SOUTHAMPTON A27
MATRIX PARK
9 M27 12 FAREHAM A2030 PORTSMOUTH 4 1 A27 A259 BOGNOR REGIS WORTHING REFURBISHED FULLY
8.2 M EAVES HEIGHT
14 A3 A272
ft and Oceanic Estates starting construction of a new 21 unit Trade Park on the same estate. Still at Nursling, Southampton construction has started at Nursling 135 where developer Graftongate funded by Bridges are building a 135,000 sq ft distribution unit. This follows closely on the heels of the Salmon scheme, Quest 271, funded by Royal London Investment Management who have completed 3 warehouse units totalling 150,000 sq ft on the former Daily Echo site adjacent to the M271 where the quoting rent is £15 sq ft.
The same factors that are encouraging new build are also leading to the high quality refurbishment of existing stock. Comprehensively refurbished units which have strong underlying fundamentals such as being located close to a motorway with good high eaves height and large yard areas often achieve a similar rent to new build stock. A prime example of this is at Sopwith Park Segensworth. Aviva Investors have just completed a comprehensive refurbishment of Units 3 & 5 with a number of new sustainable features improving the building EPC to a B. We currently have very strong occupier interest in both units with Unit 5 now under offer, the quoting rent is £14 sq ft.
Elsewhere, the refurbishment of Unit 22 Oriana Way Nursling Industrial Estate is about to commence shortly also owned by Aviva Investors, and this will deliver sought-after sustainability features such as photovoltaic cells and EV charging. It will also include remodelled Grade A office space at ground and first floors with separate access from the car park, a reception area, lift, canteen, locker room and shower facilities. The quoting rent will be £16 sq ft.
Elsewhere along the corridor we have been busy working for Merlin Real Estate at Merlin Quay in Woolston Southampton and have completed 3 warehouse and industrial transactions over the past 12 months to tenants Enoflex, Starel Stone and in August 2024 to Olleco at £10 sq ft. On behalf of separate clients in July we sold Units B & C School Lane Chandlers Ford to a private pension fund who leased the building to Acclaim Logistics. The outlook for the warehouse and industrial markets for the remainder of 2024 and into 2025 looks positive, so if you have any questions or need advice get in touch with the Hellier Langston team.
34,026 ft2 (3,161 m2
) MATRIX PARK, SEGENSWORTH, FAREHAM, HAMPSHIRE, PO15 5AP
On behalf of the Landlord
Matt Poplett
matt@hlp.co.uk 07971 824 525
Andy Hellier
andy@hlp.co.uk 07930 661 782
01489 579 579 023 8033 0041
Elise Evans
eevans@lsh.co.uk 07703 393 120
Dan Rawlings
drawlings@lsh.co.uk 07702 809 192
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