A “steady performance” has been reported in the Kent property market over the last year according to the latest research by Kent county council and property advisor Cluttons.
The Kent Property Market Report, which covers the period from April 2007 to March 2008, reported average office rental value grew by 2%, industrial rental value rose by 1.7%, with retail rents increasing by 2.5%.
Office take-up rates also improved in the last 12 months, with businesses taking advantage of lower rents compared to the rest of the UK.
The report cautioned that Kent will not be immune from the economic downturn, however the continued investment in infrastructure and regeneration projects will see it in a healthy position, when the markets rebound.
Demand for office space in June 2008 was up by over a third (36%), compared with June 2007, with demand originating from the business services, financial services, public services, utilities, construction and property sectors.
The Channel Corridor area and Thames Gateway Kent remain particularly popular locations for occupiers and office take-up included Cabot Financial’s new 43,717 sq ft call centre operation in Kings Hill, West Malling, and Vanquis Bank’s 34,000 sq ft call centre at Chatham Maritime.
Bucking the national trend, the figures also show there is a healthy pipeline of active projects in the engineering and manufacturing sectors.
According to the report, demand for lettings and sales at business parks remained strong.
One of the largest deals included the Rolex Watch Company’s £7m purchase of 60,000 sq ft of office space in Kings Hill, West Malling, which will act as its main headquarters and create 130 new jobs.
In Dartford, the first phase of Shepherd Developments’ and Durngate Property Group’s Crossways Point is due for completion in May 2009, which will provide 88,642 sq ft in two buildings, quoting rents of £25 sq ft.
Due to the lack of liquidity and mortgage availability, the residential lettings market is seeing a period of increased activity, with rental values remaining at a consistent level despite the increased demand.
Industrial property has been performing well with 2007-08 seeing the completion of a number of schemes by Glenmore in Ashford, Folkestone and Dover, collectively providing 97,646 sq ft of industrial space.
Cluttons partner David Elliott said: “The lettings market is offering real value at the moment; as property is widely available, with residential and commercial occupiers in a position to maintain current rental rates.
“We expect this trend to continue in the foreseeable future, especially for commercial occupiers, as Kent offers a very attractive rate compared to the UK average.”
Kent’s regeneration projects progressed well during the year, particularly in the growth areas of Thames Gateway Kent and Ashford.
In June 2008, Land Securities secured planning consent for its Northfleet Rise and Station Quarter North masterplans in North Kent and throughout 2008, a number of leading retailers -Tesco, Sainsbury’s, Morrisons and Asda – all looked at major investment in Medway.
Growth in Ashford looks strong which has been earmarked for 31,000 new homes and 28,000 new jobs by 2031.
Maidstone is also earmarked for further growth in the residential and commercial areas, with the development of the second phase of Eclipse Park.
