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A Look Back
The Blackwater Valley registered just over 136,000 sq ft of take-up in 2022, a respectable 15% above the 5-year annual average. Unsurprisingly, the key transactions have been in the Blackwater Valley's core office sub-markets of Farnborough and Basingstoke.
In Farnborough, legal firm Herrington Carmichael acquired c.30,000 sq ft of grade A space at Brennan House in Q1 2023, and Lenovo acquired c.20,000 sq ft of best-in-class office space at Farnborough Business Park paying £27.00 per sq ft in Q4 2022. In Basingstoke, Tech Data acquired just over 50,000 sq ft in Chineham Park.
A Look Forward
In Hook, the 120,000 sq ft 'Form 1 and 2' attracted both occupier and investor demand but remains an outlier in the market. In the past 18 months, stagnating rents in the early to mid £ 20.00's across Fleet, Frimley and Camberley have impacted development and refurbishment viability, impacting take-up levels for the coming years.
The Blackwater Valley has historically been home to many defence, aviation and security companies. The war in Ukraine sent ripples through European governments, who have since reviewed defence strategies, raising the notion that the defence and security industry is set for expansion and investment. This would likely result in the Blackwater Valley seeing a similar period of growth as defence and security businesses recruit and develop.
We expect occupier demand to focus on two key hubs; the first, Basingstoke, where 120,000 sq ft is under construction at PLANT and is due to complete next year. The next is Farnborough, with good quality space at Farnborough Aerospace Centre and Farnborough Business Park. Time will tell whether a new product will push headline rent above £30.00 per sq ft – a level yet to be reached.