Member Article

Positive growth in Commercial Property Sector

New figures show that the commercial property market is up in the region, despite tough trading conditions.

In its bi-annual review, Sanderson Weatherall LLP reported an increase in North East market activity, much of which has been attributed to attractive cost-effective opportunities available to companies across all business sectors.

Partner for Agency, Investment & Development Tim Catterall, said: “Having a presence in the North East offers many firms the chance to significantly reduce overheads whilst maintaining strong levels of trade.

“It’s little wonder that we have seen a pleasing increase in the number of enquiries from both buyers and purchasers for locations across the region.”

The flexibility and choice of shopping destinations in the regions have helped to maintain customer levels. Many independent businesses have also made the move into the vacant units, which would typically be occupied by bigger retailers.

Partner for retail, Bob Fletcher said: “Clearly trading conditions of the regions high streets are amongst the most challenging in the UK with lower discretionary spend on non essential goods. Many retailers have simply disappeared from the scene and inevitably more will follow.

“However, we have found that these vacant units, often in prime locations, have been snapped up by a number of interesting niche multiple and successful local retailers previously priced out by the competitive market conditions which were prevalent at the end of the last decade. “

The announcement that business rates are to be retained and used to finance local services will also come as a boost for the high street.

Partner for rating, Richard Farr, said: “Local authorities now have an incentive to work even harder for local businesses, existing and incoming, to stimulate growth and generate revenue in the region.”

“If they can achieve this, there’s every reason to believe the increase in market activity in the region will continue.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .