Industrial take-up across Surrey and Hampshire shows mixed picture as occupier demand holds firm

Industrial property take-up across Surrey and Hampshire remained resilient through the first three quarters of 2025, with strong occupier activity in Basingstoke and steady demand across the wider region offsetting slower performance in Andover and a constrained supply in Woking and Guildford.

According to research by Curchod & Co, total take-up across the main markets of Andover, Basingstoke, the Blackwater Valley and Woking/Guildford highlight the continued strength of the industrial and logistics sector in the South East, despite variations between local markets.

Basingstoke recorded the highest level of activity, with take-up from Q1 to Q3 2025 totalling 443,587 sq ft, almost triple the same period in 2024. The figures reflect a series of significant lettings, including major transactions at Kingsland Business Park and Intec, supported by an active development pipeline such as Radius Park and Leftfield Park.

In Andover, take-up to the end of Q3 was estimated at 22,643 sq ft, well below the same period last year, although several large deals currently under offer are expected to lift the total significantly before year-end. Availability remains limited at 4.8% of total stock, which continues to restrict activity but points to an opportunity for developers considering long-leasehold sites in the town.

The Blackwater Valley saw take-up of 136,060 sq ft to Q3 2025, a small rise on last year. Demand continues to come from occupiers relocating from higher-cost areas closer to Heathrow and London, with record rents achieved at Frimley Business Park and Watchmoor Point. New schemes at Bartley Junction in Hook and Angle 110 in Camberley are expected to deliver further space over the next 12 months.

In Woking and Guildford, take-up reached 83,130 sq ft, up from 64,562 sq ft in the same period last year. The market remains constrained by a shortage of larger units, which has supported rental growth, with prime rents now between £18 and £22 per sq ft. A series of new developments at Slyfield Industrial Estate and Guildford Business Park are expected to ease the supply shortage in 2026.

Across the region, headline rents now range from £8.50 per sq ft in Andover to £25 per sq ft in the Blackwater Valley, illustrating the diversity and depth of the South East industrial market.

Piers Leigh, Partner at Curchod & Co, said: “Despite a few quieter pockets, the South East’s industrial market remains one of the most robust in the UK. Demand for well-located, high-quality space continues to outpace supply in most areas, and developers are responding with a new wave of speculative schemes. The Basingstoke and Blackwater Valley markets in particular are benefiting from businesses relocating from higher-cost or less accessible areas, while towns such as Andover and Guildford are showing signs of renewed developer interest.

“Overall, the region continues to perform well, with good momentum heading into 2026,” he added.

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