OFFICE supply in Swindon is at its lowest level for 10 years, according to a new report.

South West and Wales property consultant Alder King published its annual Market Monitor report last week, which exposed a concerning lack of supply versus growing demand.

Earlier this month, Andrew Kilpatrick, managing director of Kilpatrick & Co in Commercial Road, raised concerns for Swindon’s future prosperity if the wait for new builds or refurbishments continued.

Alder King, which has an office in Kembrey Park and is led by James Gregory, has highlighted a pressing need for further speculative office and industrial development in the town.

Mr Gregory said the future looked bright for Swindon in 2015, but office and industrial schemes needed to come forward in the next 18 months to take advantage of the boom in demand.

“After a very strong finish to 2014, 2015 will see further increases in activity levels across all property sectors with robust demand for quality commercial space and well-located sites together with further rental growth,” he said.

“The challenge for 2015 is to bring forward more speculative development in key locations to replace dwindling stock and meet rising demand.

“There is strong occupier appetite for Grade A accommodation.”

The 30-page report shows Swindon office take-up rose last year by 14 per cent to 227,000 sq ft, the highest level since the recession.

Out-of-town demand came from Nationwide and Swindon Silicon Systems, which took space in Kembrey Park and Interface House, Royal Wootton Bassett respectively.

The town centre market saw a big improvement that accounted for 30 per cent of total take-up, mainly due to railway electrification service providers seeking representation close to the station.

The improvement in demand and the conversion of poorer quality office stock for residential use has eroded supply to its lowest level for 10 years, according to the publication.

The lack of large industrial transactions in 2014, caused mainly by a lack of suitable supply, saw industrial take-up fall 43 per cent to 557,000 sq ft, its lowest level for more than 10 years.

Swindon has benefited from the strong regional investment market, with £76.5m of investment transactions in 2014.