The dire shortage of industrial and warehousing premises within the M27 corridor could soon be over, according to commercial property consultants Lambert Smith Hampton (LSH).
There have been no significant speculative developments within Hampshire’s coastal strip since 2009 and LSH says there are currently only two units over 30,000sq ft available along the M27 motorway between Southampton and Portsmouth that benefit from a self-contained secure yard.
The shortage of modern detached industrial units of more than 20,000sq ft has been a long standing concern, says Jerry Vigus, industrial and logistics director at LSH’s Southampton office. “It has been over five years since the south coast has seen any substantial speculative development,” he adds.
But with the UK property investment market bouncing back to 2007 levels, Vigus believes Hampshire’s industrial and warehouse sector now has all the right ingredients to support speculative development projects. “With the lack of stock, combined with potential rental growth and the forecasting for investment yields compressing, we are certain that some institutions will now be identifying speculative development as an attractive option,” he said.
Although progress is slow LSH has, over the last 12 months, seen a steady increase by investors both studying and making plans to fill the south coast shortage, particularly the areas around Portsmouth and Southampton and served by the M27.
“All eyes will now be on Test Lane South, Southampton, as well as Voyager Park and Merlin Park in Portsmouth,” said Vigus, “along with the 20 acres due to become available on the former Ford Transit van site.”
Voyager Park has ambitions of becoming Portsmouth’s premier production and distribution development providing up to 645,000sq ft of new space on its 32-acres site. Merlin Park — which is offering new industrial and warehouse design & build opportunities from 40,000 to 180,000sq ft — is situated on Portsmouth’s Airport Industrial Estate. Both sites are just four miles from the city’s continental ferry port and docks.
Plans for the redevelopment of Ford’s former Southampton factory are already underway — with Ford itself returning to the Swaythling site it abandoned in July last year. Seventy Ford employees were kept on and the company wants to use existing buildings at the rear of the site for use as a vehicle refurbishment centre. The new facility would initially deal with about 20 vans and cars a day, eventually rising to 50. Ford also wants to use part of its one-time production plant adjacent to the M27 as an export distribution centre.
