Member Article

Economic upturn and demand drives rental growth in Kent

Kent and Medway’s commercial property market is seeing the return of rental growth, according to new research.

Produced by Caxtons Chartered Surveyors, Kent County Council and Locate in Kent, the report was launched at the Mercure Maidstone Great Danes Hotel, along with a new KCC-led initiative to ensure vital infrastructure is in place to support projected growth in commercial and residential development.

The report is encouraging news for the office sector with the return of rental growth for the first time since the global financial crisis hit in 2008.

While rental growth in the county is still slightly behind the national and South East averages, the report describes the upturn as significant.

Additionally, the report found that the recent past has left rents in the county relatively affordable when compared to the rest of the South East, making Kent an attractive proposition for relocating and expanding businesses, says Caxtons.

The county’s key business parks of Crossways, Discovery Park, Gillingham Business Park, Kings Hill and Kent Science Park, all recorded important deals and investment announcements. There are also several projects in the pipeline including Ashford’s Commercial Quarter.

Kent’s town centre office markets followed the national trend with many offices being converted to residential units thanks to the Permitted Development Rights legislation.

Caxtons’ Chairman Ron Roser said that as main sponsor and contributor to the Kent Property Market Report, the firm was especially pleased to see that the continued improvement in the property sector is reflected in this year’s research findings.

He said: “Kent has mirrored other occupational office and industrial markets outside London in demand and rental growth. In turn, this has sustained investor interest, and when strong assets do come to the market there is increased interest and competition.

“Consumer confidence has fuelled the residential market with a promise of almost 27,000 new homes for the county. There is marked activity on development sites across the county. This buoyancy has proved to be an impetus to major regeneration schemes with a strong residential component

“There is comparatively slower growth in the retail sector with limited rental improvement but business parks are experiencing a resurgence and in many cases, old office and dated office stock has been refreshed and converted to much needed residential dwellings.

“In general, improving infrastructure and on-going regeneration has positively and directly benefitted Kent, presenting us with many more opportunities than in the recent past. This year’s Report reflects the buoyancy across the industry and it is welcomed by all.”

The Kent Property Market Report is also supported by Cripps, DHA Planning, Kreston Reeves and RICS.

This was posted in Bdaily's Members' News section by Ellen Forster .