Availability within the South Coast industrial market was 2,142,164 sq ft at the end of Q1 2017, an increase of 4.85% from Q4 2016 (2,038,339 sq ft) and an escalation of 9.88% on Q1 2016 (1,930,464 sq ft).
We can attribute this increase with a new pipeline of speculative developments under construction along the South Coast. Availability of prime stock in Q1 2017 stood at 534,563 sq ft, representing 24.95% of the total availability, a rise of 4.85% on the previous quarter, when prime stock stood at 2,038,339 sq ft. It also represents a significant 11.0% year-on-year-rise on Q1 2016.
New prime opportunities resulting in the increase in supply within the Portsmouth region include the Solent Airport development at Daedalus, Lee-on-the-Solent, where 16 acres of prime commercial space across two business parks located within the Solent Enterprise Zone is available to the market. This presents a rare opportunity for occupiers to purchase or lease sites with outline planning permission.
Also in Portsmouth, the speculative Pioneer Park development on the established Airport Industrial Estate sees a total of 74,190 sq ft of industrial and warehouse units now available. In addition, the Dunsbury Park scheme, in a prime location at junction 3 of the A3(M), offers bespoke warehouse, manufacturing and office space from 20,000 to 200,000 sq ft on a built-to-suit basis.
Further schemes contributing to the increase of supply, and in particular, prime stock within the Southampton and surrounding markets include Alpha Park, Chandlers Ford and Mountpark, Southampton, where approximately 525,000 sq ft is under development.
At the alternate end of the spectrum, there is a decrease in the total availability of secondary stock. Presently standing at 1,607,601 sq ft, secondary stock has decreased dramatically from 1,846,824 sq ft in 2015 - a drop of 14.88%.
Until new schemes are built and occupiers begin the merry-go-round of expanding/downsizing and relocating, secondary stock will continue to be digested by those companies with immediate requirements.