Croydon is in severe need of industrial land to be released to avoid companies being forced out of the area.
Alex Gale, regional head of business space for property consultants Stiles Harold Williams says a lack of vacant space and rising rents are turning the area into an ‘industrial desert’.
A number of sites have made way for new homes, leaving vacancy levels of just 3.75 per cent in the Croydon and Mitcham area.
“For the prospective occupier it is a dire situation with many areas having little or no supply,” said Mr Gale.
“For new or start-up businesses we currently have no premises under 1,000 sq ft on our books while, at the other end of the size range, the largest available unit is only 25,000 sq ft.”
Availability levels for the region stand at around 640,000 sq ft with a take up of 670,000 sq ft being calculated for the year ending 2016 meaning that there is less than a year’s supply for the area, a record low.
Mr Gale added: “The pressure of a buoyant economy, companies moving out of central London due to sites being redeveloped for residential and no new land being released for industrial redevelopment has pushed stock availability to a record low and rents to a record high.
“There seems to be no end to this which will surely end in companies being forced out of the area.”