By Joe Smith

Associate Partner

Drake Commercial

SINCE the turn of the year, the commercial property market has gone from strength to strength and we have seen more activity than at this stage last year. Even with the political posturing having begun due to the upcoming election on 8 June, we are still seeing a good level of enquires.

The market conditions that have been prevalent in the past few years; a lack of stock with rents and capital values increasing, still remain true.

Research undertaken by Drake Commercial suggests that there are currently only circa 15 industrial buildings between 3,000 and 30,000 sq ft available on the market. Rents on second-hand industrial buildings have increased by around 10 per cent since this time last year. In respect of freehold buildings, the rise has been even more dramatic with the values being achieved in some cases as much as 20 per cent above the levels 12 months ago. In the office sector, the levels have been less dramatic but still positive.

We have been very active across various asset classes over the past few months in Northampton. Clients of Drake Commercial have recently acquired Brackmills Gateway, a 228,780 sq ft multi-let industrial estate on Brackmills. Acting jointly with TDB Real Estate, the estate is now 95 per cent occupied or under offer with strong interest in the only vacant, Unit 12 Scotia Close. The new landlords have undergone a full refurbishment of the vacant units including fencing off the yard areas to provide greater security for tenants.

Also on Brackmills, we have also completed three lettings at Cornwell Business Park. Acting jointly with Hadlands, we have completed the letting of Unit 37 to Rico Logistics Ltd which follows up the lettings we completed previously to Newport Controls Ltd and Amenities Ltd.

We have also recently completed the lease renewal of Unit 15 Osyth Close to Proaction Martial Arts Academy and have sold Unit 14 to a private investor who has retained Drake Commercial to let the building.

On behalf of clients, Drake Commercial have let Unit 4 Grafton Trade Park to James Hargreaves Plumbing Supplies. The Burnley-based firm are well established in the north and have undergone an expansion programme in the south, having previously opened depots in Milton Keynes and Daventry. Grafton Trade Park is a prominent, well-located trade counter scheme close to Northampton town centre. The two vacant units, of 5,575 sq ft and 3,932 sq ft, have been fully refurbished and are ready for occupation immediately.

In addition to the above, we have recently sold a 42,000 sq ft distribution warehouse in nearby Crick off Junction 18 of M1 to The Wigley Group, who are planning to comprehensively refurbish the unit. Drake Commercial have been retained as letting agents and there is already strong demand for this unit from a number of distribution companies.

It is clear there is momentum in the market, with limited stock and pent-up demand leading to an increase in rents and capital values.

Should you require any commercial property advice, contact Drake Commercial on 01604 620616 or visit the website www.drakecommercial.co.uk