Buckinghamshire & Bedfordshire covers the southern stretch of the M1, a prominent area for the distribution and industrial markets. It is a key regional distribution location for the south east and eastern regions of the UK and a favoured location for RDCs by blue-chip retailers.
Occupiers such as Tesco, Amazon, Marks & Spencer and Royal Mail took space in the region in 2020, which in turn drove down the availability rate to a 3-year low. There are over 10 speculative buildings under construction in Bedford, Milton Keynes and Silverstone by developers such as Gazeley, Graftongate and Total Developments which will provide some much-needed new space in 2021. As such, we are forecasting an above average 3% rental growth over the next 3 years as these schemes attract enhanced rents. A such, the region has proved popular with investors with Aberdeen Standard, Blackrock and DEKA Immobilien buying standalone retailer-occupied warehouses in 2020 which in turn significantly increased the annual volume of investment.