Business Park Performance

Within the south east, office take up on the major business parks has fallen significantly, with locations such as Heathrow and Reading experiencing a reduction of 50-60%. Kent has fared much better but deals done are limited. Demand for space has been weak due to the current financial climate, but Kent has witnessed only limited downsizing. During the last year availability has remained relatively flat. There have been limited speculative completions on the business parks. Availability is therefore more concentrated on second hand stock, with current availability levels considered manageable.

Headline rents for new stock have therefore softened, and incentive packages are more generous. Overall, business park rents have seen a modest fall of -1%. It is expected that 2009-2010 will continue to experience a modest reduction, but rents for prime space are expected to remain stable. At Crossways, Dartford, Frogmore Real Estate Partners has launched Waterside Court, providing 2,280m² (24,544ft²) within nine office units, and Lakeview East and West providing 4,164m² (44,820ft²) and 2,577m² (27,735ft²) respectively. The accommodation is available to let or for sale, quoting rents of £263.72m² (£24.50ft²). Also on Crossways, Shepherd Developments and Durngate Property Group have completed the first phase at Crossways Point providing 8,235m² (88,642ft²) in two buildings quoting rents of £269m² (£25ft²).

Business Park Rents

In one of the largest property transactions in Kent, Balfour Beatty Mott MacDonald has taken 1,912m² (20,591ft²) at 10 Kings Hill Avenue, Kings Hill, near Maidstone. All tenants on the park with 2009 lease events, totaling 3,963m² (42,664ft²), have chosen to remain at Kings Hill, which is now over 96% occupied. Other than that already underway, it would seem that new development within Kent for 2009-2010 will remain off the agenda, although marketing of the first phase of office accommodation at The Bridge, Dartford continues with encouraging levels of interest.

At Eureka Park in Ashford, the new speculative office building, Herald, which totals 3,319m² (35,725ft²) has already attracted its first major tenant, with Smiths Medical International taking 2,246m² (24,172ft²). Eureka Place comprising nine retail units, a pub, crèche and health centre has also attracted a number of new tenants with only four of the retail units still available. Northdown is now 100% occupied.

Chatham Maritime has also celebrated a recent success with Medway PCT having taken 1,594m² (17,161ft²) at Pembroke Court. Eclipse Park, Maidstone welcomed Orbit South in February with phases constructed to date now fully occupied.

Muse Developments has launched the £100m second phase of White Cliffs Business Park, located on the outskirts of Dover. The scheme comprises a major mixed-use development project over 65 acres, with B&Q already in occupation. Kitewood Commercial, developer of Altira Business Park in Herne Bay, has completed two design and build premises for ICOM and Jaytee Biosciences, totalling 2,787m² (30,000ft²) of office and warehouse space. The business park also houses a Premier Inn and Table Table restaurant and Kitewood are in discussion with several occupiers with future land deals anticipated.

Kent Messenger Group moved into 1,145m² (12,000ft²) purpose built offices in September 2008 on Estuary View Business Park, a development by George Wilson Holdings. A new health centre, incorporating the existing Whitstable Medical Practice, a pharmacy and community clinic, run by independent provider Circle Health, is also nearing completion.

Lettings

Location	Landlord	Tenant	Size m2 (ft2)	Rent	Lease Term	Agent
Herald, Eureka Park, Ashford	Quadrant Estates	Smiths Medical International Ltd	24,172	£19.50 psf	15 years with tenant’s break option in 2020	Bidwells Knight Frank Martine Waghorn
50 Pembroke Court Chatham Maritime, Chatham	Northridge Capital	Medway PCT	17,161	£18.00 psf	10 years	Knight Frank Savills
4 Abbey Wood Road, Kings Hill, Maidstone	Kings Hill Unit Trust	Capita Business Services Ltd	14,412	-	11.25 years	Knight Frank Altus Edwin Hill
42 Kings Hill Avenue, Kings Hill, Maidstone	Liberty Property Limited Partnership	The Conveyancing Channel (Searchflow)	6,874	-	9.75 years	Knight Frank Altus Edwin Hill