Page 5 - 2018 Kent Property Marke Report

Proposal for interior of Megger Ltd, Dover.
At the national level the UK office market has also performed relatively well over the last year. Kent has mirrored the national picture with buoyancy in the service sector and stock shortages in locations where large-scale conversions to residential use have occurred. Companies remain cost sensitive, which has contained rental growth, although
this has helped the county compete in the wider south
east market, particularly given the excellent accessibility to London of many towns. To continue to attract occupiers
in high growth industries the limited development that has occurred in towns such as Ashford may need to be replicated elsewhere in the county.
Kent’s business park market has also reflected wider trends. Affordability pressures seen across the south east have translated into a limited backtracking in rents across a number of the county’s key parks and campuses. However, this flexibility has supported take-up across a range of business sectors, including a notable increase in SMEs and newcomers to the county. Ambitious plans, particularly relating to the expansion of Kent’s growing specialism in the biopharma and medical sectors, will further enhance the draw of these evolving clusters to a sector with undisputed growth potential.
A key factor in attracting both SMEs and large corporates
in these high growth business sectors is the offer of high quality skilled labour. The residential market and wider environment play a crucial role in this strategy. Authorities and developers across Kent and Medway are addressing this issue head on with the 2016/17 financial year seeing the highest level of home completions since the financial crisis. With many of the county’s most significant developments now starting on site, housing provision will improve further, affording Kent a long term competitive advantage.
Looking ahead, expectations for the property market
over the coming year are inevitably measured given the backdrop. At a national level the Investment Property Forum Survey of Independent Forecasts suggest total returns
will average around 5% over the next five years, although clearly the out-turn of the Brexit process will play a role in the eventual outcome. Remaining focused on long term opportunities and in particular the needs of business,
from operational space to quality urban areas and their surrounds, will be more important than ever.
Kent Property Market Report 2018 03
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