A shortage of supply is prompting a small-and mid-box warehouse development around Milton Keynes.
ohn McDougal, industrial director at LSH in Milton Keynes, said: “Supply remains close to record low levels with four successive quarters below 1.5 million sq ft. This level is well below the long-term average of in excess of 2million sq ft and only about 12 months take-up.”
“The first six months have been positive for the area with speculative development at Magna Park and Marston Gate helping to fuel confidence, while the return of 10-year lease terms has also boosted the sector.”
Work has just started on Phase II of Chancerygate Business Centre at Denbigh West, a 46,333 sq ft development comprising 15 high-specification units, further contributing to the positive picture in Milton Keynes.
LSH say rents are expected to rise, albeit at a slower pace than last year, because new developments in the lower size range are still restricted. Supply in the mid-box market – 50,000-100,000 sq ft – will remain tight because of a lack of land on which to build.
