Suppressed Demand - what is it like in your area?
Suppressed demand is where a business has the need to expand into new or larger premises, but the space isn’t available so they “make do” with their current facilities. Effectively the demand for land and property outstrips supply, creating suppressed demand.
Our latest report BIG things in SMALL boxes, produced in conjunction with Savills, highlights the different levels of suppressed demand in the sub-100k sq. ft., small to mid-box I&L sector across England.
With suppressed demand averaging 38 per cent, it means that there just isn’t enough land available for many businesses to continue their growth journeys.
It also means that the industry isn’t achieving as much as it should, with a calculated loss to the economy in Gross Value Added of £480 million per year.
Part of this challenge stems from a lack of available land for development in England, leading to low stock levels in the small to mid-box market. We’re looking to change things by calling for collaboration between the I&L industry, planners and local and national government to make sure that a steady supply of land is available for development.
The following graphs bring the story to life and highlight the percentage of suppressed demand for small to mid-box space across I&L hotspots in England.
Whilst 38% across England presents a huge opportunity to be met, the hotspots include Crawley (166%), Leicestershire (101%), Birmingham (57%), Nottinghamshire/Derbyshire (51%) and Stoke/Stafford (50%). However, many more locations have higher than national average levels of suppressed demand.
This presents a great opportunity for the small to mid-box I&L sector to provide the space that will unlock this potential growth and give the economy a much needed boost.
Jason Rockett Managing Director at Potter Space said: “Suppressed demand presents both a huge challenge and a huge opportunity for the I&L industry. Whilst the industry will take time to evolve its thinking, we’re pleased that our market leading report BIG things in SMALL boxes is helping to quantify the opportunity available in the sub-100k sq. ft. small to mid-box market.”
At Potter Space, we’re committed to providing the right space for our customers at the right time. With ambitious plans to improve and develop space for our customers across our five national sites, we’re doing our bit to provide homes for business as well as job opportunities for the communities we work in.
Want to find out more? Download our report here.
If you’re looking for your perfect home for business, look at our available units here.