Need to regenerate

An improvement on the market in the M3/27 area is on the cards as the region moves further away from the recession. That is the prediction of Mark Clancy of London Clancy who said: “There is more confidence in the market compared to a year ago and improving sentiment as the rebuilding of the economy continues. The pace of the recovery should also pick up, particularly towards the end of the year.” Clancy also warns of some problems, such as the availability of bank finance and the impact of government spending cuts. “That said, there will be great value in the market of the M3/M27 corridor for funded property owners and occupiers, especially in relation to secondary opportunities.” This year’s challenge, Clancy suggests, is the regeneration of some of the 1970s and ’80s business areas and the promotion of new development. That will require “strategic vision.”

Furthermore, while the industrial and warehouse sector will remain stable, that for offices “will move forward from the disappointing 2010 levels as occupiers seek to take advantage of low second hand office rents and substantial incentives.” Basingstoke should benefit substantially from the improved market climate. Among the deals last year Hammer, a specialist storage distributor, signed a new lease on a 1,858 sq.metres (20,000 sq.ft.) unit at Valad’s Intec Business Park for ten years at £107.60 a sq.metre (£10 a sq.ft.). As part of the deal, Valad will be investing in new building services and air conditioning upgrade. Valad is also investing in the refurbishment of part of Building 2 on the business park as part of a wider asset improvement programme.