Small occupiers accounted for much of Uxbridge’s letting activity in 1992, writes Andrew Jansons. But this trend spells bad news for large units, which account for 60% of the 248,000 sq ft standing empty in the town.
With the completion of the M25 and the extension of the M40, Uxbridge is now well positioned at the M40’s junction 1 and is about a mile from the M25’s junction 16.
Historically, the A40 Western Avenue experiences bottlenecks in both-directions between Swakeleys roundabout and Hillingdon Circus.
But a realignment of the M40 which is now under way should greatly improve accessibility.
To the south of Uxbridge, the A408 Stockley bypass provides fast dual-carriageway access to junction 4 of the M4 and to Heathrow Airport. Heathrow’s catchment area now extends to Uxbridge, resulting in a number of service-related industries being based in the area.
As a market town on the main Oxford-London road, Uxbridge saw significant industrial expansion with the opening of the Grand Union canal in the late 18th century.
The Great Western Railway’s decision to bypass the town in 1838 was followed by a decline in Uxbridge’s importance. But the extension of the Metropolitan Line in 1904 from Harrow to the town prompted a revival in industrial development.
Uxbridge’s traditional industrial district is located about half a mile to the west and south-west of the town centre close to the M25 and M40. Initial development focused on the Uxbridge industrial estate in the 1950s and this ageing stock is now gradually being redeveloped.
Hillingdon council owns most of this estate. Riverside Way accounts for most remaining industrial space and is owned jointly by Sun Alliance and Percy Bilton. Major occupiers include Trimite, Calor Gas, Cape Boards, Bosch, Fisons and Sony.
Overall, there is about 2.5m sq ft of industrial stock in the town, of which 284,000 sq ft – 11% – is currently vacant or available. Five large buildings account for 60% of this figure, for which there appears to be little demand.
Lettings of between 3,000 sq ft and 6,000 sq ft accounted for much of 1992’s take-up of 100,000 sq ft. Dagenham Motors, Elite Cargo and Daytona Motorcycles have taken units of between 5,000 sq ft and 6,000 sq ft owned by Sun Alliance on Cowley Mill industrial estate. Rents of £7.50 per sq ft with six months rent-free have been achieved.
Freehold industrial values have dropped from a peak of £125 per sq ft in 1989 to £70 per sq ft today. Hill Brothers (Uxbridge) has recently agreed a sale of 2,500 sq ft of new space at Arundel Road to Kimal at £70 per sq ft.
At Brutus Investments’ Chiltern Business Village, De Souza Duncan Cons and Jansons & Partners have secured several short-term lets of between 1,500 sq ft and 3,000 sq ft at rents of £6.50 per sq ft.
Uxbridge has seen little new industrial development. Percy Bilton has recently completed a 10,044-sq ft B1 scheme on Riverside Way. Agents Rogers Chapman and Healey & Baker quote £12.50 per sq ft. First floors are finished to full office specification, while the ground floor is left to a shell finish.
Since the opening of the new A312 Hayes bypass, linking the M4 and the A40 Western Avenue, there has been growing interest in Victoria Road off the A40 Western Avenue, South Ruislip’s industrial area.
At the heart of this activity has been Budgens’ 10-acre UK administrative and distribution base. Following the relocation of the company’s distribution operation to Wellingborough enterprise zone, Budgens has been disposing of surplus space at Uxbridge through Jansons.
So far, 160,000 sq ft has been let, with another 25,000 sq ft under offer. Birkart International has taken 66,200 sq ft of warehousing and offices on a 24-year term subject to four-yearly rent reviews at £4.44 per sq ft.
Earlier in 1992, 93,755 sq ft of mixed eaves-height space was let to Neff UK on a six-year lease at an initial rent of £2.77 per sq ft.
These deals reflect occupiers’ concern to keep overheads at manageable levels. The preference seems to be for competitively priced stock rather than new-build, headquarter-style buildings. With demand strongest for units of between 4,000 sq ft and 6,000 sq ft, there is an oversupply of units up to 2,000 sq ft.
Secondary units of more than 20,000 sq ft are proving popular, with rents hitting £3 to £4 per sq ft, provided that eaves heights are a minimum of 18ft.
Against this background, the outlook for 1993 is encouraging, with the first two months throwing up unsatisfied requirements of 1.25m sq ft.
Andrew Jansons is the senior partner at Jansons & Partners in Uxbridge.
