Award Winning
commercial property solutions
By Simon Toseland
The very nature of our business means that we get to talk to lots of different companies. From pie makers to price comparison agencies. From ‘Hi tech’ motorsport engineers to packaging companies. And many of these industries are busier than ever.
Sure, lots of companies are finding themselves in difficult times – many of them in the property / construction industries, but a more general overview reveals that there are many businesses out there doing rather well.
It has been said many times before that recession can offer opportunity – one man’s misfortune is another’s fortune but another underlying trend is also apparent. Those making a success of their businesses stand out as being very good at what they do. There is no room for mediocrity or indecision. The current economic environment is perfect for decisive, well considered and executed action.
So this recession, unlike the early 90’s, is apparently providing business with a refreshing deep cleanse – and boy did it need it.
And this phenomenon does not appear to be limited to the companies themselves. Revitalised businesses seem to breed success. So where these businesses group together, the locality also benefits. This is true of Wellingborough and East Northants, both of which seem to be enjoying better ‘health’ than their immediate neighbours, like Northampton and Bedford. Certainly we have experienced first hand the successful growth of a number of local businesses which have needed to relocate to accommodate expansion. I’ve touched on this point in past articles for the Business Times, where we see many local companies working together – exchanging in business and supporting each other.
Wellingborough retailers have for some time championed the ‘shop local’ ethos and this initiative translates equally well for business to business growth outside of the high street.
There is not a glut of vacant space available in any one sector of the market. There are not dozens of 5,000 sq ft office buildings available or 10,000 sq ft industrial units to let. Wellingborough town centre does not have terraces of vacant shops on the market. The choice is limited. Take a look at our two pages of advertising that follow this article. There is quite a diverse selection of property available there. Granted there is a pretty wide variance on values but these reflect individual circumstances rather than an underlying trend on values.
We’re told that residential values are ‘holding up’ and this is clearly partly to do with supply and demand. In last month’s article I reflected on the change from the abundance of speculative development to a more controlled release of new property through design & build contracts (where builders only build for specific requirements rather than building something in the hope that it might sell or let ‘sometime’). This is, as I pointed out, much as we experienced in the early 80’s and it did mean that there was inherently more stability in the property market. Freehold transactions were significantly outnumbered by leasehold deals. People wanted to rent not buy (at least as far as commercial property was concerned). The United Kingdom’s investment market was stronger as a result. The Conservatives encouragement for everyone to own their own house, exploded into owning their own business premises. The banks suddenly found new business in lending millions of pounds rather than thousands.........
So maybe a return to a more balanced rental market will be a key factor in economic recovery. After all, does it make sense for a business to tie up most of its money in the building from which it operates rather than feeding the money back into the business?
From our experience in Wellingborough and East Northants, it looks as though many of the local businesses have already worked this out and are already reaping the benefits.
Finally, for those looking to start their own business I once met a chap who was looking for a garage in which to store his car collection. It turned out that this extended to over 70 cars worth around £70m! When I asked him his secret for success, he replied, ‘invent something legally addictive’. He’d written the programme for Space Invaders when he was just 17.