A South West property expert says a chronic lack of industrial units in Wiltshire and growing demand for business space has resulted in increased rental rates across the region.
Lindsay Holdoway, managing director of HPH Commercial Property, which owns and manages a range of properties throughout north and west Wiltshire, warns that this lack of industrial space threatens the potential growth of the region’s economy.
“The collapse in demand in 2008 saw rental rates fall then stagnate and in consequence the development pipeline dried up,” said Lindsay. “But now with the upsurge in demand and lack of new supply over the past 2 years we have seen occupiers pushing up rents and capital values in Wiltshire in particular.
“At HPH we have seen rents rising for the first time in many years, in some instances by up to 15 percent per year, and these increases in value have triggered the ability to completely refurbish some of our older units to make them more energy efficient and responsive to our occupiers’ needs.”
HPH is also developing a new business park between Trowbridge and Westbury which will offer much-needed business and distribution accommodation for local companies and for large relocations to Wiltshire. Ground works have just begun on the 35 acre site which will provide over half a million square feet of industrial space with a range of unit sizes up to a maximum of 250,000 sq. ft.
“The buoyant market and increase in rents and capital values has enabled us to invest in the provision of new commercial space including the new business park at Hawke Ridge despite increasing construction costs,” added Lindsay. “The park will provide environmentally sustainable, efficient space, tailored to the needs of new occupiers, enabling their businesses to succeed and grow.
“This will help to address the current chronic shortage of industrial space locally and free up second hand space too enabling further improvement to the existing building stock also. However more needs to be done to attract further industrial development including transport and infrastructure improvements to safeguard the region’s economic growth, particularly in Wiltshire.”
For more information on opportunities at Hawke Ridge Business Park please call James Gregory at Alder King on 01793 615477 or John Mulholland at JLL on 0117 927 6691 or visit www.hawke-ridge.com