It has been a very tough two years for the Kent office market with only 200,000 sq ft being taken up by occupiers across the county in the last two years. This has been followed by a sluggish start to 2009 with no reported lettings taking place above 5,000 sq ft.
However, although it is fair to say demand is at allow ebb, there is limited choice for occupiers seeking prime space and tenants expecting a marked drop in quoting terms have been disappointed. At Crossways Business Park, Dartford, there are two new office schemes offering a total of approximately 80,000 sq ft. The guide rent quoted by developers Frogmore and Shepherd Developments and Durngate is £25 per sq ft – in line with rental expectations before the credit crunch began. Unlike the Thames Valley, Kent has not seen high levels of speculative development. Supply of new build is limited but so too is demand and there will be some hard negotiations before the 1st tenant is signed up.
At rival business park, Kings Hill, West Malling, there has been no recent speculative development.
Large occupiers are in short supply, so who’s in the market?
Balfour Beatty, Kuehne & Nagel, Saga and Medway Primary Care Trust are in the market for office space in Kent and there remains the possibility of Kent persuading a large requirement to migrate around the M25 from Surrey. For example, World Wildlife Fund, The Environment Agency and hedge fund Man Group are thought to be focusing their attention on the southern sector of the M25.