INDUSTRIAL DEMAND CONTINUES TO OUTSTRIP SUPPLY ACROSS THE SUSSEX COAST
Rents continue to rise due to demand significantly outweighing supply across the Sussex Coast industrial market, according to SHW’s Q1 2023 South East Industrial Focus.
David Martin, SHW’s Partner and Head of Sussex Coast, comments: “On the whole, 2022 saw a good level of take up across all size ranges, with lower take levels generally in locations where availability of good quality stock is restricted. As predicted, strong demand continues to be linked to logistics / B8, rather than B1 manufacturing, due to the continued need for space to serve online retailing / last mile logistics. However, this sector was beginning to slow down towards the end of 2022 and we see this continuing into 2023.”
On the Sussex Coast, demand remains extremely high, with availability still very low. Brighton & Hove has a 1.2% vacancy, equating to 58,000 sq ft available. Logged demand exceeded 2 million sq ft in 2022, but just 75,000 sq ft was let (down from 87,500 sq ft in 2021), demonstrating the urgent need for new and refurbished industrial space. Panattoni Park Brighton, Shoreham Airport, which is about to start construction, will provide a total of 257,000 sq ft of new space this year.
In Eastbourne and the surrounding areas, demand also remains high at nearly 2.5 million sq ft, pushing rents up slightly to £12.50 sq ft in 2022. Just 89,000 sq ft was let (down from 288,000 sq ft in 2021), including 20,000 sq ft which was split and refurbished into two units and taken by East Sussex Country Council and Go Plastic Pallets. Availability remains low in comparison to demand with 185,000 sq ft recorded.
In Hastings, St Leonards and Bexhill, take up has again soared from 76,500 sq ft in 2021 to 134,000 sq ft in 2022 (0 recorded in 2019 and 13,500 in 2020). Availability has increased to 203,000 sq ft, with 1-9 Ivyhouse Lane in Hastings accounting for over half this space, but this is far outstripped by the total logged demand of over 2.6 million sq ft.
Similarly, in Rustington & Littlehampton, rents increase further from £10 per sq ft in 2021 to £12.50 per sq ft in 2022, and take up quadrupled to 24,000 sq ft. Vacancy remains low at 1.23%, with slightly more space available, currently, (74,000 sq ft) and demand outstrips supply, totalling over 1 million sq ft logged in 2022.
The Shoreham and Lancing area has seen a dramatic increase in rents, jumping from £9.50 in 2021 to £14.50 in 2022. Take-up increased from 54,500 to 62,500 and vacancy remains low at 1.2%. Availability stands at 40,000 sq ft and with a demand logged at 850,000 sq ft across 2022 rents should remain strong.
Finally, in Worthing demand is also extremely high with almost 1.5 million sq ft logged in 2022. Take up was slightly down to 36,000 sq ft in 2022, achieving a highest rent of £11.50 per sq ft (£11 in 2021). With just 274,000 available, more quality industrial stock is needed.