Shropshire commercial property agent Toby Shaw, from Towler Shaw Roberts, says there are many reasons for optimism in the sector. Here’s his market update:
The positive signs towards the end of 2013 have continued over the last 12 months as confidence returns to the general economy.
Whilst companies have an appetite to expand and grow their business the limited availability of modern accommodation is having a somewhat stifling effect on general market activity.
This is now being addressed with developers looking to bring forward schemes although there is the inevitable time delay in the procurement process from inception to completion of the finished product.
Those developers that have been prepared to build ‘speculatively’ have scored a mark on the rest of the market.
One such company is Morris Property who have enjoyed phenomenal success with the Vanguard Trade Park Development on the north side of Shrewsbury.
The Company has recently completed the sixth and latest phase which provides 23,500 sqft of trade counter space and all units were sold /let before construction works were completed.
The marketing of the next phase will commence in the New Year and we anticipate a similar level of success.
This optimism has percolated through for other types of commercial / industrial premises or though there continues to be a desperate shortage of premises in the 5,000 – 10,000 sqft region.
We have also seen a marked upturn in level of enquiries for industrial space in the other provisional towns including the likes of Oswestry where we have recently sold a 32,000 sqft unit and a 20,000 sqft at figures in excess of the asking prices.
Other notable lettings and sales have been completed at Buttington Quarry and Potter’s Industrial Estate in Welshpool.
The recovery and renewed confidence in this sector has stimulated strong demand for well let industrial investment properties with a number of transactions arranged by TSR throughout the year.
These include the sale of Units E – F, Vanguard Park, Shrewsbury a new standalone trade counter that is let to Euro Car Parts on a 10 year Lease.
The property was sold to a Chester based Investment Company at an asking price of £850,000 reflecting a yield of 6.75%.
TSR have also arranged the sale of Allscott Mill near Telford, a multi-let industrial estate offering a range of warehouse / office building of approx. 70,000 sqft on a site area of 5.75 acres.
The property was fully let at a rent of over £100,000 per annum and was sold in excess of the asking price of £1.5 million.