Page 10 - Caxtons KPMR 2021

Caxtons’ Property Market Analysis
Office Performance
The uncertainty in the city centre office market seen across the UK has taken its toll on activity in Kent over the last 12 months. While the county’s business parks have seen some significant lettings, the limited take-up in Kent’s town centres has focused on floorplates of less than 279m2 (3,000ft2). Nonetheless, the shortage of quality space has maintained rental values across the county, with the average prime rent at the end of H1 2021 stable at £182m2 (£16.90ft2). This translates to an annualised average growth rate of 3% over the last five years, albeit this growth is driven by a select few towns.
The lettings that have occurred included DNS Accountants taking space in the refurbished Old Library in St Faiths Street, Maidstone. The town also saw the arrival of Tiger Law and Tiger HR Ltd, which opened a second office in Sterling House in Maidstone in March.
However, reflecting the national picture, a large number
of businesses continue to take a wait and see approach to future requirements, while some are concluding they need less space, but are placing greater emphasis on quality.
This has benefited serviced office operators and co-working operations. A survey by Locate in Kent identified 50 co- working locations across the county, with a further ten in the pipeline. The survey found most co-working facilities are operating at over 60% occupancy for hot desks and 80% for private offices as at June 2021, with supply outstripping demand in some areas.
A recent addition to the county’s stock includes the BizSpace scheme at Kestrel House and Knightrider House, Knightrider Street, Maidstone. The company purchased and refurbished the two adjacent office buildings, now offering 1,997m2 (21,500ft2) of office space, in units of 33-586m2 (357- 6,310ft2). The scheme has benefited from the continued loss of office space in Maidstone to residential use. Dartford has
3.1%
Average annualised growth in the Kent prime office rent over the last 5 years Caxtons
also seen the opening of co-working space in the former Magistrates Court and police station at Highfield Road.
The Hill Hub development, which opened in April, comprises 275m2 (2,960ft2) of commercial space, provides desk space for up to 120 people with a mix of open-plan offices and smaller spaces, with meeting rooms, a roof terrace and café. In Gravesend, Whitehall Place opened this year, providing circa 9,000 sq ft of high specification serviced office space within the refurbished former Customs House which overlooks the Thames.
In Whitstable, George Wilson Holdings completed on the renovation of the 836m2 (9,000ft2) Radio House, formerly home to Invicta Radio, having bought the building back in 2020. The building, on the John Wilson Business Park, completed in April and is now fully let, with occupiers including Private Jet Charter, Retreat Services, Turner Jackson Day Architects and Red Key Concepts.
Renovation of Radio House, John Wilson Business Park, Whitstable.
85%
Increase in the average prime Gravesend office rent over the last 5 years
Caxtons
Office rents
2018 2019 2020 2021
350 300 250 200 150 100
50 0
Kent average prime office rent
190 180 170 160 150 140 130 120 110 100
Source: Caxtons
08 Kent Property Market Report 2021
Source: Caxtons
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Ashford Canterbury Dartford Dover Folkestone Gravesend Maidstone Medway Sevenoaks Sittingbourne Tunbridge Wells Tonbridge Thanet
£ per m2
£ per m2
CREDIT: GEORGE WILSON HOLDINGS