Such is the pressure for
industrial property at, or close
to, Heathrow that new ideas
are coming through to provide
more space on a given site.
First it was the double decker
and now investors are being sought
for a £300 million underground
facility of 185,800 sq.metres
.) at Rectory Farm,
Hounslow. Formal Investments is
being advised by Savills and CBRE
and the scheme already has
Rental projections are for
similar levels to Heathrow at
£118.36 a sq.metre (£11 asq.ft.
Nicholas King of Formal said:
“Getting planning for a site is an
achievement, particularly for a
new concept like this one”.
This type of project does make
sense in an area like Heathrow
where the rents make it possible
to get structures that are higher
cost construction projects.
Bridget Outtrim of Savills said:
“Rectory Farm demonstrates the
large range of opportunities there
are to create storage space”.
The opening of the 53,882 sq.metres
.) Lexicon Shopping
Centre as part of a £760 million
regeneration is set to boost the
performance of the commercial
market in Bracknell
Bracknell is already a strong
performer this year, said Simon
Fryer of Fryer Commercial, with
23,225 sq.metres (250,000sq.ft.
let or under offer and the town is
now short of prime office space.
“We have lost about 69,675 sq.metres
.) of offices to
residential conversion, so there
is only around 46,450 sq.metres
.) of Grade A and B
available”, Fryer said.
The fact that there is little new
development means that rents
will increase, he added. He quoted
1 Arlington Square, where Fryer
Commercial is seeking £301.28 a
sq.metre (£28 asq.ft.
), well ahead
of a recent high.
While the economic uncertainty
over Brexit may pervade many
boardrooms, there is an antidote
to this in Oxfordshire where the
business parks are in such rude
There is a proliferation of new
developments planned for the
parks combined with the arrival of
new occupiers and the expansion of
indigenous companies. The flavour
can be captured by the Canada
Pension Plan Investment Board
(CPPIB) buying Hermes’ 50% stake
in Milton Park for around £200
The largest speculative
development Oxfordshire has ever
seen is at Harwell Campus, where
a 17,651 sq.meets (190,000sq.ft
development is underway, part of
which is the refurbishment and
expansion of the Runway building,
following the completion last year
of the Genesis building. It is
anticipated that the 5,574
building will be predominantly pre
let. Zephyr, along with two sister
buildings, is complementary to the
4,645 sq.metres (50,000sq.ft
Quad One development which
will complete this year.
An example of the type of
occupier at Harwell is Cobalt Light
Systems (now part of Agilent
Technologies Inc) who are leasing
a 2,183 sq.metres (23,500sq.ft
bespoke building. Cobalt, the
fastest growing SME in the UK in
2015 and Queen’s Award for
Enterprise winner, is moving from
William Cooper of Harwell
commented: “The campus is
witnessing the most significant
growth seen in this sector
anywhere in the UK at the
present time, creating a European
innovation district comparable to
MIT in the USA”.
HITS THE HIGH NOTE
Commercial Property Register
October 2017 - February 2018www.compropregister.com
A LEXICON FOR
Smaller science and business
parks are also thriving in
Oxfordshire, an example of which
is the new PERCH business centre
at Elmsbrook, Bicester.
The 1,399 sq.metres
) building, which is
being promoted by Cherwell District
Council, is aimed at small local
businesses. Interestingly, it has
received funding from the European
Regional Development Fund.
Also at Elmsbrook, Crest
Nicholson and A2 Dominion are
building 232 eco homes, 30%
of which are affordable, in an
£80 million project.
positive view of the market is shown by Adrian Dolan of Duncan Bailey
Kennedy, who said: “ Despite Brexit, the commercial property market in
High Wycombe has proved robust across all sectors so far this year. Rents
above £10 a sq ft have been achieved on Cressex Business Park and there
is demand from owner occupiers wishing to purchase their own units”.
Picture courtesy of Vogt