News: Property News from SHW

Posted on 7th February 2019

These paragraphs are reproduced here courtesy of Stiles Harold Williams. They are taken from their SE Industrial & Logistics Focus brochure.  They seem to support the frustrations of some of our growing businesses in Burgess Hill.

The Mid Sussex region continues to frustrate occupiers who want to locate to the area and also existing companies wishing to expand but simply can’t due to lack of availability.
80% of interest is from B8 occupiers with limited B1 interest.
There is high freehold owner occupier demand but few options.
Current active demand in the area from occupiers who would consider Burgess Hill / Haywards Heath as a location is over 800,000 sq ft.

2018 has seen a reasonable level of letting activity considering the lack of available stock and no speculative development planned imminently on existing sites with planning.
There is an ever increasing number of local occupiers frustrated with the lack of available stock.
Freehold transactions agreed at Tungsten Park, north of Burgess Hill indicate good demand if developers are willing to speculatively develop sites with planning.

Availability continues to reduce with only 77,000 sq ft currently available (3.9% of total stock). This level is very low especially and is frustrating occupiers.
Occupiers are being forced out of the area now as they cannot find suitable accommodation and this is likely to continue if sites are not released through planning soon.
The majority of the existing units are located on the Burgess Hill Industrial Estate which offers variable quality and low eaves units and a number on the fringes have also been lost to residential development.

Rents for good quality, second hand space lie between £9.00 and £10.00 per sq ft. Rents for new space will be in the region of £11.50 to £12.50 per sq ft, possibly more, depending on size, specification and location. Smaller trade counter units will demand a higher rent of circa £12.00 to £14.00 per sq ft.
Older stock with low eaves and generally high site cover continue to be of interest to occupiers where rents are around the £7.50 to £8.50 per sq ft level.
Freehold owner-occupier demand continues. Prices for older stock are circa £100 to £110 per sq ft and could be as high as £160 to £180 per sq ft for newly constructed units if they were available. There are very few freehold opportunities for occupiers to consider amid strong demand.

As demand for both freehold and leasehold units continues, rental levels and freehold sale prices are steadily increasing due to the scarcity of product.
Burgess Hill has an unusually high proportion of occupiers seeking units to purchase rather than lease. This owner-occupier demand is resulting in great frustration due to the lack of supply.
Most of the demand is from B8 users but there are a few B1 & B2 occupiers in the marketplace. However units need to be built to secure transactions as pre-sales or pre-lettings are very difficult to agree.
If new stock is not released through the planning process soon, more occupiers will be forced to locate elsewhere. However many occupiers who have already relocated away from Burgess Hill and Haywards Heath are relocating to other Sussex towns Many are considering outside of Sussex due to the severe shortage of stock in the whole of the Gatwick Diamond region.

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Judi Arditi, Director
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