WHILE the political and economic climate shows uncertainty, there is opportunity in the commercial property market. One effect is the pressure on sterling and the attractiveness of both investment property and freehold vacant possession from international investors or companies.
UK companies with foreign parent companies may, subject to the business case for such investment, now look to kick-start expansion or relocation projects. Much of companies’ appetite for such a property project has been affected by the clear lack of decent second hand industrial or new build space. The level of new space being offered below 50,000 sq ft (4,645 sq m) in the East Midlands region has been limited by the costs of construction and lack of economies of scale in this type of development.
The development process does mean that the reaction of the suppliers is always behind the demand and in more recent years significantly impacted by the costs of construction. Hopefully, now following the general election, we will see an impetus from Government to place strong focus on the economy and supporting those companies that want to invest in the UK.
The supply of opportunities are forthcoming and within Berrys Commercial Agency team we are working with several landowners across the East Midlands, East Anglia and Central Midlands to provide future industrial, trade counter and warehouse buildings.
We are currently working with Leicestershire County Council on an opportunity in the north west of the county, where a proposal to develop up to 41,000 sq ft (3,809 sq m) of light industrial/warehouse accommodation will be marketed later this year. This scheme will provide new high quality industrial units whereby tenants will be encouraged to grow through the scheme and show an economic benefit back to the County.
In addition to this sector, we are also experiencing growth from occupiers and investors for high quality office accommodation. Those companies where the question of pricing is secondary to the business need for high quality office accommodation and the need for growth, are actively working with commercial surveyors to find suitable solutions.
Berrys are working with Hortons Estate Developments on their second phase of the Kings Court Scheme at Kettering Venture Park. The scheme will provide a variety of high quality office units from 3,000 sq ft (278.7 sq m). Following some early interest in the scheme, a planning application will be submitted later this year with the view that development can commence in the second quarter of 2018.
Finally, Berrys will shortly be marketing two light industrial / trade counter schemes in the region and seeking early interest from occupiers and tenants alike. Interested parties should contact agent in the first instance for further information.
Further information on the properties identified within this editorial please contact Simon Parsons, MRICS from the Sole Agent, Berrys, on 01536 213169.
