Leasing activity in the South East industrial market slumped 56% in the first half of 2024, reveals the latest SHW Industrial Focus.
The South London market saw take-up levels fall 19% in H1, while activity in mid-Sussex fell 85% and activity in the Crawley and Gatwick area fell 79%. Brighton & Hove was one of the few areas in the South East that reported increased activity (212%).
Rents remained static in most areas across the South East, with Eastbourne, Hailsham & Polegate seeing rents increase from £12.50/sq ft to £12.75/sq ft. In Hastings, St Leonards and Bexhill, rents jumped from £9/sq ft in 2023 to £10.50/sq ft in H1 2024.
Tim Hardwicke, partner and head of agency at SHW, said: “The first six months of the year have shown overall take up is down, compared with H2 2023. Although the second half of the year usually records a higher level of take up, this significant decrease is reflective of the uncertainty in the market – economically and politically – which has delayed many occupiers’ decisions on property moves.
“However, there is a more positive outlook going forward. With a new government now in place and interest rates widely expected to decrease imminently, backed by the large number of lease events due over the next 18 months, we are expecting transactions to increase, bringing take up back to an annual average.”
