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Prop-Search is forecasting a stronger year for commercial property across Northamptonshire.
So what do we believe will define the market in 2014? We start with what some might say is a heroic prediction given the continued uncertainty around the economy, that the year ahead will see the bottom of the commercial property sector. Tell-tale signs of improving fortunes were seen during the latter months of 2013 and we believe there are compelling reasons why this will continue during the year ahead.
Simon Toseland, a Director at Prop-Search, says: “We have already witnessed investors looking and bidding for opportunities outside the narrow focus of prime property, particularly in London, that we have seen over the past year or two. We also believe that there will be a rise in values, which will mark the bottom of the cycle of the widespread falls that all sectors have experienced since the recession hit.”
There is a tangible shortage of quality industrial stock across the County as the non-existent levels of development activity compound falling availability levels. This is causing concern from occupiers and agents that there is relatively little quality space now available for them to choose from. For those landlords, investors and developers with well-located sites, there are good opportunities ahead and we do expect to see gradual rental growth with incentives hardening.
The office market is slowly also seeing signs of improvement, albeit at a slower rate, and this looks likely to continue during 2014. Office take-up improved during 2013, predominately driven by a return to Grade A lettings, with stock levels falling as the overall development pipeline continues to be restrained. Office occupiers traditionally consume speculatively built vacant products rather than pre-let or design and build options, and it is likely that as stocks deplete, many landlords will look to refurbish existing stock. New build office deals remain unviable, given build costs against residual values.
Simon Toseland concludes: “So whilst there are still some uncertainties in the market, we anticipate that activity will continue to increase throughout 2014 and lead to commercial developers having the confidence to start putting spades back in the earth.”
Further information or advice can be obtained from Prop-Search - Tel: 01933 223300 / 01604 492000 or its website: www.prop-search.com