Industrial enquiries are at a higher level than this time last year with strong demand for freeholds under 465sq m from owner-occupiers with very limited stock available, which is likely to drive capital values in excess of £100 per sq ft, says Robin Dickens, business space director at Young & Butt.
The demand for institutional products remains slow, particularly in the 1,860 to 3,255sq m range, although Young & Butt has contributed to the larger speculative lettings in recent months. Plastimo UK has leased 3,534sq m at Hamilton Business Park, Hedge End and Target Distribution has taken a new 2,790sq m unit at Morley/Easter Management’s Kites Croft scheme, both at a headline rent of £6.50 per sq ft.
Young & Butt has been involved in what is likely to be the largest deal of the year. Exact details of the letting cosmetics manufacturer, Estee Lauder, at Segensworth are confidential, although generally the market is aware of the pre-let of an 18,6000sq m warehouse and office facility.
In the local occupier market, Young & Butt is involved with new industrial schemes at Heritage Business Park in Wickham, all of which are under construction and will provide much needed modern accommodation to local businesses. Following the sale of 7.5 acres to Rokeagle in Concorde Way, Segensworth North, Young & Butt will offer a number of speculative units and design and build opportunities to the market at new scheme Delta Park.