The property market across Kent performed robustly over the last 12 months against the backdrop of the economic challenges facing the UK, according to the newly published annual Kent Property Market Report.
The 31st edition of the report, which is produced by Caxtons Property Consultants, Kent County Council and Locate in Kent, found the industrial and logistics market performed particularly strongly, with the county expected to outperform the rest of the South East.
Rental levels for industrial and logistics space have grown across the region over the last 12 months, with rents increasing by 8%, compared with the South East’s average of 6%.
Land values have also increased significantly, with some Kent towns seeing values growing up to 40% since last year, with yields reaching 2.5%.
Due to rocketing demand Kent has less than a year’s supply of industrial and logistics space, but new space is coming to market at Aviator in Ramsgate, Panattoni Park in Aylesford and LOC8 in Maidstone.
The science and business park sector also posted a strong showing over the last 12 months, with Discovery Park (pictured) and Kent Science Park experiencing strong levels of lettings and renewals. Off the back of this strong performance both parks have developed new lab and start-up space.
Cllr Roger Gough, leader of Kent County Council, said: “It has been a challenging 12 months for the industry. However, once again our location, close to London and the rest of the South East, means we have performed well. It is great to see Kent playing its part in supporting the two key sectors of logistics and distribution, and science and innovation, both vital to the economic wellbeing of the country’s economy.
“We must acknowledge that it’s not all good news and the retail market, and our town centres, continue to wrestle with the changing shopping habits accelerated during Covid, and being hit by the cost-of-living crisis, but we remain confident for the future.”
Mark Coxon, head of commercial agency at Caxtons, added: “The industrial property sector has blazed a trail for growth, benefitting in large part from the same factors that have hit the traditional retail market and high streets.
“The last few months have seen a slight slowdown, however, new product is coming on-stream and deals continue to be done. Investment in the life sciences sector continues at pace, with demand high for laboratory space across the South East, with Kent a major beneficiary.”
Susie Warran-Smith, chair of Locate in Kent, said: “Over the past 20 years, nearly a quarter of London’s employment land is now housing, with most of those employers now operating around the M25, and especially on the Thames Estuary instead, with strong levels of investment in Kent.
“With industrial vacancy rates at record lows, Kent’s employment land values have risen to match residential values, and in some areas, doubling it, as the industrial and logistics sector shows no sign of slowing.”
