COMING out of the summer holiday period, it would be reasonable and fair to say that there was without doubt a general feel of uncertainty and nervousness towards both the occupational and investment markets.
However, in complete contrast, September has been strong month with several transactions completing or exchanging contracts.
At the end of September, we completed on the investment sale of Nene House, situated on the Pytchley Lodge Road, Kettering. The property is subject to three occupational tenancies and was sold at a price reflecting an initial yield of circa 7.8 per cent, after purchaser’s costs of 6.6 per cent.
We are also close to exchanging contracts on a new development site, whereby we will be able to offer a mixture of commercial investments. Lot sizes will vary but commence from circa £1.1million exclusive. Outside the county, we are acting on behalf of investors to acquire commercial investments, with a strong focus on business parks and single-let modern office units.
These transactions reflect the diverse nature of commercial property activity in and outside the county and the investment attitude of investors and businesses alike. The lack of stock in the market is providing opportunities for sale and leaseback, where owner occupiers who may be seeking to carry out corporate acquisitions wish to release capital for such acquisitions. With the likelihood of some interest rate increase, these opportunities may be more available in the future.
Investment market reports seem to indicate that activity will continue to grow and that those sectors, such as High Street retail, which have seen a significant decrease in demand will find new impetus with the likely attractive returns these properties can offer.
The industrial market continues to be a sought after market, especially where there is either long-term income or opportunities to refurbish older buildings. The introduction of leisure operators is providing a new market for those older buildings and working with property companies we are able to appraise these opportunities and provide advice as to the marketing of the buildings.
If you are an owner of commercial property, we would be delighted to discuss any opportunities with you. Contact, in confidence, Simon Parsons, BSc (Hons) MRICS on 01536 213169.
