Member Article

Member News: ‘The market is on the up’ say leading commercial property experts

Leading commercial property agency, Sanderson Weatherall LLP, is reporting an increase in North East market activity, based on its bi-annual review.

Partner for Agency, Investment & Development, Tim Catterall, said: “The figures for the past six months are very positive, a result of the attractive, cost-effective opportunities being offered to companies across all sectors.

“Having a presence here in the North East offers many firms the chance to significantly reduce overheads whilst maintaining strong levels of trade. It’s little wonder that in the last six months, we have seen a pleasing increase in the number of enquiries from both buyers and purchasers for locations across the region.”

Despite tough trading conditions in retail, the flexibility and choice of shopping destinations in the North East is helping the region to maintaining trading conditions.

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.

“We have seen significant changes in how brands are positioning themselves in the market.

“Major multiples are now concentrating on the top 100 retail destinations almost to the exclusion of lesser towns. Game,Thorntons,Arcadiaand significant others have announced programs to reduce unit numbers and have already exited many high streets.

“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 market is certainly not dead – just different.

“The change has allowed stores to refresh their expansion programs. For example, one of the North East’s most successful multipliers, Greggs, is keen to expand its successful format into non-traditional locations.

“We are also seeing positive enquiries for new client, Middleton Grange Shopping Centre inHartlepoolthanks to a strategic redevelopment of the scheme.”

The industrial sector is growing strongly in the region, as evidenced by a recent letting which saw Storage and Handling Equipment (SHE) Ltd move into 150,000 sq ft (13935.456 m²) at Cowpen Lane Industrial Estate, one of the largest single sq ft industrial lettings on Teesside.

Partner for Industrial, Jonathan Simpson, said: “In total, we have transacted almost 500,000 sq ft of space in the past six months.

“We recently advised Magnum Packaging on the sale of a 15-acre site in Eaglescliffe to car part manufacturer Nifco, who are on-site creating a purpose built 100,000 sq ft plus factory.

“The challenge now is to ensure the take-up can continue by encouraging developers to set their sights big, ensuring supply doesn’t outstrip demand.”

Development prospects could be aided by the recent announcement that business rates will be retained by local councils and used to finance local services as opposed to being set to central government.

Partner for Rating, Richard Farr, said: “We have welcomed the plans which come into effect this autumn. 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.”

Sanderson Weatherall LLP is a firm of chartered surveyors and property consultants with offices throughout the North of England and London. The experienced and multidisciplinary team provide a wide range of expertise in agency, asset management, rating and valuation, planning advice and landlord and tenant negotiations.

For more information visit www.sandersonweatherall.com

This was posted in Bdaily's Members' News section by Sanderson Weatherall .