As well as an under supply of commercial development land there is an acute shortage of open storage land in the South Hampshire region, according to commercial agents Keygrove Chartered Surveyors.
Andrew Archibald, Director of Keygrove, says “There are many different businesses that need bare land without buildings to run their business. This could be for car and lorry parking, car hire, van hire, scaffolding, builders yards, plant & machinery, new car storage, etc. Assuming a site has the benefit of planning permission for open storage use (Class B8) the cost to convert bare land into usable open storage can also be phenomenally expensive particularly if it needs to be surfaced with reinforced concrete and with the provision of water, electric, drainage and telecoms.”
“If you can find open storage land to buy you may need to pay in the region of £1 million per acre depending on its location, or the rent can be at least £70,000 per annum per acre if it is close to the docks or motorway.”
Andrew Archibald, Director of Keygrove, continues “The price will depend on a multitude of factors such as location, ease of access, shape, level and quality of surfacing. Keygrove are currently marketing three open storage sites: a surfaced open storage compound of 0.7 acres at Kent Road, Portswood, Southampton; 0.5 acres at Exbury; and up to 4 acres at Fawley Power Station which is now recognised as a valuable waterside employment site.”