Milton Keynes is an attractive location for businesses with excellent transport links to London and a booming local economy being key factors in its rising profile. However, according to property consultants Bidwells, the city is being held back by a severe lack of high quality office space which could potentially hinder growth.
The claim was made at a seminar organised by the property consultant, which was attended by leading business figures showcasing how the development of Milton Keynes’ commercial property market could help to unlock the city’s potential.
It featured a number of keynote speakers including chief executive Charles MacDonald of Milton Keynes Development Partnership, Service Director of Planning and Transport at Milton Keynes Council Anna Rose and Bidwells head of commercial Roger Yates.
Mr Yates believes that the city is ripe for speculative office development activity, especially given the high demand for quality space at present.
He says; “Milton Keynes is the country’s most successful New Town, and based on Centre for Cities’ research, is the fastest growing city in the UK.
“But with dwindling supplies of Grade A office stock and industrial availability reaching historic lows, Milton Keynes looks ripe with opportunities for new development – but despite all this activity is still currently limited.
“Other than Pinnacle, Network Rail HQ and a building for VW Finance there has been very little office development activity in the last 10 years, yet two new buildings built speculatively last year were immediately snapped up and were let at record rents for out of town lettings.”
Of course, Milton Keynes is not alone in facing a rapidly dwindling supply of office stock, as many major cities in regional areas of the UK have reported similar issues. Yet while speculative activity has started to rise in some of these areas, development activity in Milton Keynes remains relatively subdued.
In her keynote speech, Anna Rose claimed that a “host of key drivers” such as solid infrastructure, plentiful land and a good labour supply will ensure that property and business ventures within the city limits and beyond will succeed. She therefore called on developers and stakeholders to come forward and state their requirements to the city council, claiming she would like to see those with plans “knock on her door” with their ideas.
Mr Yates concluded by highlighting the numerous financial advantages open to developers willing to engage in speculative activity for Grade A office space, and thanked all seminar attendees for expressing an interest in the future of Milton Keynes.
He said; “Research by Bidwells has found that the net development value per square foot in Milton Keynes has risen to levels not experienced since 2006.
“At the seminar we discussed the barriers facing commercial property growth and the possible catalysts that could unlock the city’s potential.
“It was a really interesting event and great to get so many key people all under one roof discussing what can be done to help Milton Keynes reach its full potential.”
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