2020 Kent Property Market The annual guide to investment & development in Kent Contents Caxtons’ Property Market Analysis Cover: 04 10 20 Proposal for Panattoni Park, Aylesford Caxtons’ Property Market Outlook Industrial and Distribution Performance Rural Performance CREDIT: Panattoni The COVID-19 crisis has profound Having attracted the attention of both The farmland market has remained resilient implications for households, the economy investors and logistics operators for its this year with a strong rebound in activity and the real estate market, but property relative affordability and connectivity over post lockdown, reports Savills. can be part of the recovery solution for recent years, the pandemic has only added to Kent’s future. requirements, driving robust rental growth. 24 Residential Performance 06 16 Kent’s residential market has proved Business Park Performance Retail Performance remarkably resilient during the crisis. Kent’s business and science park market The retail sectors has felt the full impact of The range of schemes coming forward will remained active during the pandemic, the crisis, but there are signs independent continue to attract the growing demand with lettings progressing during and post retailers are repopulating some towns in the from out-movers from London, but the lockdown. The county’s science parks have wake of rebased rents. The reorienting of withdrawal of incentives such as the higher been active in the fight against COVID-19. towns and repurposing of retail space will Stamp Duty threshold presents a concern be part of the solution for the future. for 2021. 08 Office Performance The pandemic brought greater caution towards town centre office locations during the lockdown period. While uncertainty is likely to persist for now, local towns may 03 attract greater activity in the long term as Welcome full time commuting takes a backseat. An introduction to the 29th edition of the Kent Property Market Report, produced by Kent County Council’s Economic Development Division, Caxtons and Locate in Kent. 25 Housing at Castle Hill, Ebbsfleet Garden City. Over 2,000 homes have now been completed at Whitecliffe, Ebbsfleet Garden City, bringing the population to nearly 5,000 people, a third of the planned total. 06 CREDIT: Ebbsfleet Development Corporation Proposal for ‘Leap’, Maidstone’s new Innovation Centre based at Kent Medical Campus. CREDIT: Bond Bryan Architects Locate in Kent Commentary Kent County Council, Medway Council & Kent’s District Council Commentary Contributory Sponsors’ Articles 14 18 Inward Investment Leisure and Tourism Performance 60 The official investment promotion Visit Kent review the year and recent investments as well as the impact Cripps Pemberton Greenish agency for Kent and Medway on the sector from COVID-19. reviews recent market trends and 62 highlights notable investment 26 DHA Planning projects in the county. Infrastructure and Regeneration Kent County Council, Medway Council and Kent’s District Councils 64 commentary on infrastructure and regeneration. Handelsbanken 58 66 Green Infrastructure 18 Hollaway Exemplar projects from across Kent highlighting investment in Proposal for the Hangloose Adventure at Bluewater, which will see the solar energy. creation of England’s longest and 68 fastest zip line. MHA MacIntyre Hudson CREDIT: Bluewater 70 RICS 38 Kingstanding Way development, Tunbridge Wells. The development 15 is forecast to create 3,700 new jobs Ryse, Herne Bay: aerial view Strategic Developments, of the proposals. directly and 2,000 indirectly. CREDIT: Lichfields CREDIT: Fletcher Rae/Ryse Contacts and Acknowledgements 72 Strategic Developments Location map and list of developments by use class across Kent and Medway with contact details. 75 Contact details 76 50 Acknowledgements Proposal for the Jasmin Vardimon Centre. CREDIT: Link City Kent Property Market Report 2020 01 Proposal for Newtown Works, Ashford CREDIT: Hollaway Studio 02 Kent Property Market Report 2020 Welcome to the 29th Edition of the Kent Property Kent County Council’s Economic Development Market Report. The report is produced by Kent County Division works with public, private and voluntary Welcome Council, Caxtons and Locate in Kent. sectors to support economic growth by encouraging and supporting businesses; working closely with The Caxtons Property Market Analysis reviews specific sectors to promote growth and finding ways property deals and activity during 2019-20 and covers: to fund business critical infrastructure and unlocking • Business parks key development sites. • Offices • Industrial and Distribution Locate in Kent provides a comprehensive, confidential • Rural (courtesy of Savills) and free business relocation and advisory service for • Retail all companies looking to relocate to or expand in Kent • Residential and Medway. An update on Inward Investment and future The producers of the report thank sponsors and opportunities is provided by Locate in Kent. contributors to the report: • Cripps Pemberton Greenish In Leisure and Tourism Visit Kent provide a review • DHA Planning of new accommodation and attractions across • Handelsbanken the county. • Hollaway • MHA MacIntyre Hudson The Infrastructure and Regeneration section features • Royal Institution of Chartered Surveyors current and planned developments. It focusses on Kent’s growth areas, continuing regeneration of Kent’s We hope you find the report useful and informative. coastal towns and rural communities, housing initiatives and policy as well as significant investment in road and rail infrastructure. Green Infrastructure highlights projects and Mike Whiting programmes to support sustainable development. Cabinet Member for Economic Development, Kent County Council The Strategic Developments pages feature a comprehensive list of sites, useful contact details and a location map. The full report can also be found at Ron Roser www.kentpropertymarket.com Chairman, Caxtons Caxtons Chartered Surveyors, established in 1990, is one of the largest independent property practices in the South East offering a full range of agency, management, professional and surveying services Gavin Cleary across all property sectors. Chief Executive, Locate in Kent Ltd Kent Property Market Report 2020 03 Caxtons’ Property Market Analysis Caxtons’ Property While we are heading for a difficult period, Market Outlook Kent’s experience over recent months -7.4% demonstrates that the property market UK property total return forecast for 2020 can be part of the solution for the future. Source: IPF Survey of Independent Forecasts for UK Commercial Property, Aug 2020 Last year this report attempted to look beyond the economic The Kent market generally reflects the national pattern, CREDIT: CAXTONS and political uncertainty afforded by the long running Brexit although it appears the industrial and business park sectors process. Little did we know at the launch of the 2019 Kent are performing a little better than the national picture. In fact, Property Market Report in November, that 2020 would see the county’s industrial market is experiencing an exceptional uncertainty replaced by apparent wholesale structural change year, with rents rising by a record level of 13.6% over the last in how we shop, work and socialise. Five years or perhaps even 12 months. a decade of change has been accelerated into months. Having attracted the attention of logistics operators for its Real estate has been front and centre of the changes that relative affordability and connectivity over recent years, the have affected us all. It is not surprising therefore, that the new stock coming forward in Kent was already drawing strong impact of the COVID-19 pandemic is being felt across the UK demand. The pandemic has only added to requirements, property market. Letting activity came largely to a halt at the driving robust rental growth. This has further contributed to time of lockdown and to date has shown only limited signs of the county’s investor appeal which has expanded over the recovery. Tenants, particularly in the retail, leisure and travel last couple of years. sector immediately felt the impact with multiple CVAs and business closures occurring over the summer, with more Kent’s business and science park market has also remained to come no doubt in the autumn. Inevitably, the investment active during the pandemic. Many lettings in train prior to Colonial Ltd’s Cross-channel Business Park, Minster. market reacted cautiously, with transactional volumes the lockdown were progressed, while new and expanding significantly reduced at the time of writing (September 2020). businesses have agreed terms since the start of the crisis. As might be expected, science parks such as Discovery Park, Kent prime yields The recession caused by the coronavirus pandemic will be Kent Science Park and Kent Medical Campus have been Industrial Multi-let Industrial Distribution Offices usiness Parks less severe than initially forecast by the Bank of England, but particularly active with COVID-19 related activities combining 10.0 currently it still expects UK economic output to decline by with demand from other scientific businesses. There is 9.5% in 2020, with an almost doubling in unemployment to also some evidence of companies looking to the county as 9.0 7.5% by the end of the year. As the last several months have an alternative to, or as a supplement to, a Central London shown, things can change very quickly, but it is clear we are presence. Rents remain stable, but the market remains tight. 8.0