NOT ALL DOOM AND GLOOM FOR 2019

It is some time since I put pen to paper to talk about the state of the Commercial Property Market.

Unfortunately, I am unable to ignore the very sad demise of our High Street, the most recent casualty being HMV who are back in the headlines for the second time and for all the wrong reasons. 

Regrettably they will not be the only name to disappear from our High Street and there are other murmurings of other household names disappearing from the retail landscape.  However, enough of that doom and gloom for now as there is more to commercial property than the High Street.  Despite the demise of the multiples demand remains strong from local retailers for premises away from the High Street.

Probably the star of our show in 2018 was a letting of a 32,500 sq ft headquarters industrial/office building in Progress Road.  The letting was agreed within a week of the property coming to the market. The tenants are a substantial avionics company and only yesterday I visited their premises to find them comfortably settled in to their ‘new home’, where they expect to remain for at least 10 years and beyond.  Happy landlords and happy tenants is what we pride ourselves on!

I have spoken before about the growing popularity of commercial property as investment vehicles and the trend continues.  On a larger scale, and this is something that many will not know, local authorities are big spenders on commercial investments - spending breaking the £1bn mark in the first half of 2018. Data compiled by Savills revealed that councils spent nearly 50% more on commercial property in the first six months of 2018 than in the same period in 2017.  In these days of budgetary constraints that is surprise to most of us, however it is good to know local authorities are having to find ways of making our money work harder for them.

If you are thinking of investing in commercial property the industrial sector would certainly be a good place to start although competition is likely to be fierce for your acquisition. Good hunting for 2019, and we look forward to speaking with you to discuss all your commercial property requirements.

By Diane Tait, Commercial Manager

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