Expert View: BCP Industrial Property Market

Historically, the conurbation, and in particular Poole, has suffered from a limited supply of employment land. This shortage of industrial stock will remain a problem into 2023 and beyond.

Occupier demand continues to outstrip built and available industrial supply, with pipeline supply also affected by the reduction in speculative development amid build cost inflation and funding costs.

Bryony Solan, associate at Vail Williams: “Despite new development coming through, we are aware of occupier requirements which still cannot be fulfilled in the BCP conurbation due to a lack of appropriate stock.

“An employment land shortage is exacerbating the issue, with delays to the Local Plan compounding the situation. If this issue is not addressed, it may force local employers to move their operations outside the area.”

Collaboration is key

Bryony continued: “More collaboration is needed between the local authorities and the commercial property agents on the ground. This will help to establish

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where demand is coming from, what is needed, and where land needs to be allocated for industrial development.

“We also need to see more done to address the planning challenges the area faces – specifically, an improvement in planning timescales from the Local Planning Authority, to allow industrial development to come through in a timelier fashion.”

What will occupiers do?

According to Ben Duly, Senior Surveyor at Vail Williams, increasing rents, rising energy costs and the spectre of rising business rates, which could increase by up to 26% in the BCP area, are all putting pressure on occupiers to look at their costs.

He said: “Occupiers of poorer quality units with lease events in the next 18 months, are likely to consider moving to higher quality, better insulated space, to help with their energy costs, whilst meeting their ESG policies.

“Landlords of ageing industrial stock may therefore wish to think about investing in their units, either through extensive refurbishment or complete redevelopment, to deliver a higher specification of unit to market, boasting green credentials. This in turn will support them in meeting their requirements ahead of the EPC Regulations in April.

Chinks of supply light

Despite supply challenges, 2023 will see the delivery of nearly 200,000 sq ft of new high-quality industrial stock come to market. Bedrock Park on the Ferndown Industrial Estate will deliver much needed highquality stock with the 26-unit scheme offering a range of green credentials from solar PV panels and EV charging points to target EPC ratings of B.

Construction of a 14,690 sq ft speculatively built unit at Link Estate, Holton Heath Trading Park, Poole has completed. Vail Williams are also due to launch a new scheme at Magna Park, Poole, in 2023, which will deliver c.50,000 sq ft over two units, subject to planning consent.

There is no doubt that there will be choppy waters ahead in 2023, but there will be opportunities to take advantage of in changing market conditions. www.vailwilliams.com

President’s Column

by Caron Khan