Property experts say rising rents for industrial units reflects the strong demand across Surrey and Hampshire.

A recent rent review on a 12,179 sq ft industrial unit in Alton, Hampshire, undertaken by Curchod & Co’s Farnham office, resulted in a 47 percent increase in the annual rent from the previous review.

While the scale of the increase may appear striking, it reflects the sustained demand for industrial and distribution space since the last review of the property’s rent in 2019.

Over that period, accelerated by the growth of online shopping during the Covid-19 pandemic, demand from business occupiers has outpaced supply across both north Hampshire and southwest Surrey.

Nick Reeve, a partner at Curchod & Co, said the uplift seen in this case is representative of wider market dynamics across the region.

“This kind of adjustment isn’t unusual,” he said. “Across the region, industrial rents have risen sharply due to an ongoing imbalance between supply and demand.

“There’s a real shortage of modern, good-quality space, and occupiers are competing for well-located, operationally efficient units.”

Although speculative development is returning in some areas, Mr Reeve warned that constraints remain.

“Planning and land supply are still major bottlenecks, and demand hasn’t eased; if anything, it’s becoming more acute,” he said.

“Many businesses are reviewing their logistics, shortening supply chains, or looking to upgrade from ageing stock. But the pipeline of new space is still limited.”

He added that market pressure is increasingly visible through rent reviews and lease renewals.

“We’re working with landlords and tenants across the South East, and many are experiencing similar levels of adjustment,” he said.

“It’s a challenging market, but one that rewards proactive management and forward planning.”

Founded in 1938, Curchod & Co is one of the largest commercial property agents outside London.