Times have been challenging for business over the past few years, but there is light at the end of the tunnel. Our market leading report, BIG Things in SMALL Boxes produced in partnership with Savills, discusses the outlook for the small to mid-box industry over the next five years – and things are looking bright.
Growing demand for space
The report shows that income forecasts from Oxford Economics suggest ‘a favourable macroeconomic environment’ for demand growth is on the horizon between 2025 to 2026 – of around 2.5 per cent.
This is similar to levels in 2013 to 2014 which supported the highest demand for the sub-100k sq. ft. market in the past decade. This shows that better times for business might be here sooner than thought, however, if stock levels and the supply of land for development remain low, it will place upward pressure on rents.
Should the delivery rate keep on a level similar to the past five years (2018-2022), the report shows that demand is expected to recover to its previous average of 16m sq. ft. per annum. However, if stock levels were to increase, the demand could reach up to 22m sq. ft. per annum.
Delivering new space for businesses to grow
At Potter Space, we’re doing all we can to help meet this demand. Our five-year development plan continues to roll out across our business estates to increase stock and provide more homes for businesses to call their own.
Our research, BIG things in SMALL boxes, shows that businesses are crying out for new space to expand their operations – and we are determined to help support the change needed to meet this need.
We have recently completed Phase one of our £18 million investment in
our Droitwich Park, with Unit 101 welcoming Falcon Contract Flooring, and 102 under offer. Phase two of the investment is in progress, with unit 103 due for completion at the end of the year, and 104 early 2025. Beyond this, the plans will see the development of up to three new industrial units. The rear of the site has obtained outline planning for 75,000 sq. ft. up to a height of 15 meters and further detailed planning has been obtained for a 21,000 sq. ft. industrial unit at the front of site, with a haunch height of 10 meters.At our Ripon Park, building work has recently been completed on Unit 54 which welcomed Turners Accident Repair. As part of our future for our Ripon Park we have plans in progress for our Halikeld House development. The development will provide 23k sq.ft. in the shape of three new terrace units, which will be perfect for local businesses looking to grow. Alongside this we also have planning for a further 90k sq. ft. of new space for our customers on the site.
Jason Rockett Managing Director at Potter Space said: “It’s clear that there is huge appetite in the sub 100k sq. ft. market for more space. If owners and developers are going to meet this need for more stock, there needs to be a coordinated approach from Government, local authorities and industry to work together and identify opportunities to unlock growth.
With so much development in the pipeline, the future looks bright for businesses looking to grow in the small to mid-box market.
To see if one could be your new home for home for business, visit our To Let page.
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To find out more about the state of the small to mid-box market, download our report.
