There remains activity in the Kent industrial sector with landlords working hard to retain existing tenants and some landlords with vacant space offering really quite aggressive deals to attract a new tenant, especially if the covenant is strong. Headline rates have dipped a little but it is in the hidden incentives where landlords are most prepared to be “creative”. Rent free periods and contributions to specialist adaptations and even repairs that a sitting tenant is contractually responsible for itself are all up for negotiation.
The big movers in the Kent Industrial and Warehouse markets have been Aldi, the discount supermarket, who are due to start on a 560,000 sq ft major distribution centre at Queenborough this October. Distributor CKR have taken 67,000 sq ft at Crossways’ Cargo Centre and KCC are attempting to breathe life into Manston, where there is 77 acres allocated for a new business park. The hope is that Chinamex will create a hub to showcase Chinese industry in the UK and share technology and working practices.
Most of the activity remains in the sub-10,000 sq ft category where hard fought over deals are still being done although levels of activity are well below their peak in 2006.