A group of commercial property experts based in Kent has called for businesses to invest in new projects to address a shortage of supply which could threaten economic recovery.
According to the Kent Developers Group, the recent UK Commercial Market Survey by the Royal Institution of Chartered Surveyors (RICS) has thrown into sharp relief the need for speculative developments.
The survey revealed that commercial property availability has now fallen to its lowest level since 1999, as 34 per cent more surveyors have reported localised shortages since the survey was last conducted.
Commercial property chairman at Kent Developers Group, James Speck, claims urgent action is required in Kent to ensure businesses will be able to grow in the area.
He says; “The supply of modern space available for immediate occupation is at low levels and unless we build more, and quickly, the county could lose out on attracting new companies.
“With demand from businesses for commercial property returning, and interest rates still low, now could be the right time for developers to consider investing in speculative development.
“Across Kent we are seeing a growing level of enquiries.”
While the problem of commercial property shortages is by no means limited to Kent, it is in this county that the issue is becoming most pressing. Office and industrial space availability has dropped by 49 per cent and 42 per cent respectively this year – something which the Kent Developers Group attributes to changes in planning laws making it easier for developers to transform existing commercial stock into residential property.
This claim has been backed up by the RICS survey which found the South has seen the highest number of commercial to residential conversions under Permitted Development Rights.
In addition, research by Locate in Kent has shown demand for industrial property has risen by 175 per cent in the past 2 years, indicating that commercial, not residential, developments are most needed at present.
Kent’s Locate chief executive, Paul Wookey, called for local authorities to consider fast tracking commercial applications, especially those for office and industrial properties.
He continued; “Small sized town centre offices are an important part of Kent’s property mix and we continue to see a growing demand for serviced offices by overseas businesses as the first step to planning their larger long term investment into Kent.
“While the conversions of former commercial offices may be making a much-needed contribution to the region’s under supply of new homes, local authorities will undoubtedly become concerned if business growth can no longer be accommodated – and hopefully be more open minded to permitting commercial development.”
