Award Winning
commercial property solutions
Following the award for the Counties ‘Deal Maker of 2011’ presented by Estates Gazette Interactive, Prop-Search continues to secure numerous lettings & sales in the local commercial property market.
The year 2010 to 2011 saw us transact of 611,000 sq ft of commercial property within Northamptonshire. To date (mid May 2011) we’ve placed over 700,000 sq ft within the Northamptonshire market alone. This represents a significant percentage of Commercial Property within the County and demonstrates that occupier demand continues to grow despite difficult trading conditions.
Whilst the overwhelming number of deals done are leasehold transactions, there is an improvement in the number of freehold deals completed (a number with the assistance of bank funding) confirming that Banks are indeed lending again – albeit subject to certain criteria.
The growth in occupier demand is encouraging but the virtual complete lack of new development means that the supply and demand equation is not looking too clever. Whilst values (rents and freehold prices) remain low, we have seen a tangible decrease in occupier incentives. That is to say that rent free periods / half rent incentives and other ‘give aways’ are becoming less generous and many occupiers need to lower their aspirations on the type of deals they can strike. There needs to be a happy balance for both landlords and tenants that will prove more sustainable for all parties in the long run.
As the growth we are experiencing gradually extends through various industry sectors, we can expect new development to re-surface. As with most things in life, the problems facing us are not limited to just one issue – the lack of existing stock is one matter but the significant lack of development land presents us with more of a headache, given the time taken to bring suitable sites through the planning process. Because of this, we are beginning to see more interest in brown field sites.
So just as we can be encouraged by an apparent improvement in market conditions, we are not ‘out of the woods yet’ and the careful balance between the respective interests of seller and buyer remain both sensitive and fragile.