^{▲ Club Way, Cygnet Park}

Supply

■ The supply constraints that have been present in the East of England market have continued in 2017 with supply currently totalling 958,000 sq ft. Whilst this represents a 30% increase on 2016, there are only four units on the market. The 200,000-300,000 sq ft size band has the most amount of space available which is highlighted in the adjacent chart and reflected in the average unit size available in the market being 239,521 sq ft.

■ There are currently no Grade A units available in the East of England which has resulted in limited take-up of existing units in the market. Savills is marketing two large units that have come back to the market in 2017 totalling 575,000 sq ft in Kings Lynn on behalf of Gardman. The largest unit on the market is Units 1,2&3 Hamlin Way where 332,600 sq ft is available.

^{Source: Savills Research}

Take-up

■ Take-up in the East of England reached 2.6 million sq ft, the highest on record which highlights the occupier demand present in the market. This has been primarily driven by strong deal activity at Roxhill’s Peterborough Gateway scheme, there were five deals at the scheme in 2017 which totalled 1.6 million sq ft. The largest deal at the scheme and across the region was Lidl purchasing land to construct a 754,000 sq ft unit.

■ The long-term average for take-up in the region was 797,000 sq ft which highlights the strong demand in 2017 with take-up 225% above the longterm average. The lack of supply in the market has resulted in occupiers favouring build-to-suit space, this was evident in 2017 with 75% of total space transacted being build-to-suit. These build-to-suit deals were not solely concentrated at Peterborough Gateway, the other schemes in the region where build-to-suit deal activity occurred were Lancaster Way Business Park and Suffolk Park. The strong demand for build-to-suit units is set to continue in 2018 as there are currently no Grade A units on the market.

^{Source: Savills Research}

Development Pipeline

■ There are currently no units under construction in the region which will result in supply constraints continuing to persist in the short-term.

^{Source: Savills Research}