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
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