• This is the smallest of the Eastern Region markets, but is a strategic location and due to benefit from infrastructure improvements.

• A lack of supply in Romford and Ilford has hindered take-up increasing in the last five years. Occupier demand has been focussed in the smaller size bands as there has been a lack of floorspace available over 10,000 sq ft. Notable occupiers who leased space greater than 5,000 sq ft in recent years in Romford include Canon, Clegg Gifford Insurance, Richburns and Garrets International.

• Supply has fallen substantially in the last five years to stand at just below 70,000 sq ft this represents a 60% fall from 2014 supply levels.

• The fall in supply has been driven by the lack of new development and the impact of permitted development rights. Residential developers have sought to capitalise on the rising residential values as a result of the improving infrastructure. The Elizabeth Line will improve current journey times from Romford to Tottenham Court Road and Canary Wharf to 33 and 28 minutes, respectively. It is estimated that over 300,000 sq ft of office space has been converted to residential uses since the implementation of permitted development rights.

• However investors and developers should still consider Romford & Ilford as an attractive location to invest and develop offices. The lack of supply has resulted in pressure on headline rents increasing with record rents being achieved in 2017 and 2018. Prime rents have increased dramatically. HCL paid £20 per sq ft on Eastern Road, Romford when compared to 2016, prime rents only stood at £14.50 per sq ft.

• Whilst speculative development is not financially viable, refurbishments on existing stock can be considered as existing occupiers are willing to pay higher rents which has been demonstrated in the last two years.

• Romford has further room for rental growth when compared to neighbouring markets such as Stratford and Brentwood. As previously mentioned Romford prime rents stand at £20 per sq ft which is a significant discount when compared to prime rents in Stratford and Brentwood.

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