Crawley / Gatwick Office Market
1 minute to read
Some have been swift to predict office market meltdown in this location, with proximity to Gatwick Airport assumed to mean total reliance on the aviation industry.
Not quite: deal data is down, but no more so than other M25 locations. Despite clear challenges in aviation, the Crawley/Gatwick market has seen encouraging leasing activity over the last 12 months. There is no race to the bottom on rents; a number of deals concluded during lockdown maintained the headline ERV at circa £27 per sq ft for the best new/refurbished space – and even a new all-time high of £27.50 achieved. Some smaller deals are now emerging, heading towards £30 per sq ft – which still looks great value, compared to most parts of the M25 ring.
Regrettably, Deloitte closed its local office recently and Lloyds is likely to follow – although these are reflections of wider changes of the finance sector working patterns, not a specific local decision.
Positively, the unheralded diversity of the local economy has been demonstrated in recent deals – pharmaceutical recruitment, technology, engineering and medical – so again, it’s not just about planes. Final point – Manor Royal owners can take comfort from underlying real estate values – land prices for logistics development are now around £3 million per acre.
Market Data
