Swindon’s commercial property market has bucked the regional trend, recording above average increases in office and industrial take-up in the first half of 2015, according to Alder King’s Market Monitor Update report.
With many unsatisfied active office and industrial enquiries in Swindon, coupled with the return of small-scale speculative development, Alder King’s Swindon office is predicting an even stronger second half of the year for the town.
The supply of office space in and out of town has fallen to 690,000 sq ft, Swindon’s lowest level for over 10 years. The acquisition of several former office buildings for residential use, including Avebury and Dauntsey House at Stonehill Green in West Swindon and Guild and Electra House in the town centre, has also eroded the level of supply. Focal Point, recently sold at auction, is now being refurbished to provide good quality office accommodation and will be a welcome addition to the office marketplace.
Swindon’s industrial market has seen dramatic levels of demand in the first half of the year, with take-up almost matching the total 2014 figure of 557,000 sq ft. Supply has dropped to just 1.3 million, its lowest level for over 10 years, and the only large buildings available are restricted to Groundwell Industrial Estate. Two small unit speculative schemes are under construction at Glenmore’s Westmead scheme, where some occupiers have already moved in, and at Rockhaven’s Kembrey Park scheme where construction is well underway.
James Gregory, partner at Alder King, said: “Swindon is punching above its weight so far this year, recording very strong levels of take-up. The record low level of supply is a major concern – more speculative development is urgently needed to provide businesses with the quality accommodation they require.”
Alder King’s Market Monitor Update provides an overview of the commercial property market over the first half of the year in Bristol, Bath, Bridgwater, Cardiff, Exeter, Gloucester, Plymouth, Swindon, Taunton and Truro. It also includes reports on the region’s retail, investment and residential land markets.
The report reveals that the rest of the South West recorded a slight drop in take-up at 3.1 million sq ft, due in part to the uncertainties of the General Election and the lack of quality supply. Alder King predicts stronger take-up and rental increases in the second half of the year.
The supply of offices across the South West peaked in mid-2012 at 5.7 million sq ft but has fallen by 49% to 2.9 million at the 2015 half year point. After peaking in 2009 at 9.98 million sq ft, industrial supply has also dropped year on year to 4.1 million sq ft at the 2015 half year point.
Market Monitor Update is available to download from: www.alderking.com/news-publications
Pictured above: James Gregory, partner at Alder King Swindon