Haslams’ Industrial Property Snapshot
1st quarter 2019
Haslams has released its annual ‘sci fi’-themed Industrial Market update for Reading, writes Neil Seager.
This year, as you may expect, it cannot avoid Brexit. It is noted that while some occupiers in this sector have paused, a good number remain active with some driven by Brexit stockpiling and others by the continued expansion of online retailing and some surprisingly positive manufacturing numbers.
In Reading, take is down compared to 2017 but this was expected due to the lack of supply. It is reported that units over 15,000 sq ft are in particularly short supply. Rents have moved on again with £12.50 per sq ft being achieved at Suttons Business Park and £15 per sq ft at Trade City, Reading Gateway.
The town saw over £100 million of investment in this sector during the course of 2018 which demonstrates the continued appetite from investors who generally view this sector as a safe property haven at the current time. As a result yields remain at record low levels.
There are a number of new developments on the starting blocks albeit in the short term this will not plug the supply gap sufficiently. These schemes include McKay’s Theale Logistics Park and Arlington’s concept proposals at Reading International. Those that drive into Reading along the A33 will probably have noticed the rather large advertising hoarding for the latter.
Haslams welcomes the recycling of poorly located and obsolete stock to much needed residential at Cardiff Road, but encourages stakeholders to open their minds to green field development in more appropriate places perhaps to the south of the town. Such is the strength of the market in these locations, values for industrial development now beat residential.
The rise of technology will continue to play an important role in the sector. AI and robotics need to be thought about in future design and refurbishment. Indeed, much like a Dalek and stairs, a robot tasked with moving goods around a warehouse is unable to cope with a floor that is not precisely flat.
For further information contact Neil Seager:
For a copy of the full report Event Horizon contact Tanya le Sueur:
Previous years reports are also available:
2017 – Eleven
2016 – A Rogue One
2015 – The Search for Stock
2014 – The Market Awakens