In our Property Insight series, our agents share their knowledge on what’s happening in the world of commercial property and land agency. From what’s trending in the Midlands market to what landlords, tenants, investors and developers need to know, we reveal our expert opinion.
Our Asset Managers Bobby Brown and Pru Singh share their Q1 reflections for the office, industrial and retail markets…
“With winter now under our belt, we have a clearer picture of regional commercial property activity,” explains Bobby. “Generally, the office market is steady. Out-of-town business parks remain more attractive than city centres, largely due to parking certainty, reduced commuting times, and the ability to offer more flexible working.”
This being said, hybrid working is becoming limited, as employers continue to restrict at home days. Pru adds: “We’re finding business looking to return to workplaces are focusing on limiting remote or hybrid set-ups. To trial this, tenants are seeking more flexible leases, or leaning towards serviced-style offices.”
In the industrial sector, properties in the 1,500-4,500 sq ft region are commanding strong rental prices. Pru says: “Existing, affordable stock is popular, particularly those offering high energy efficiency. Tenants and investors are acutely aware of their carbon footprint, meaning environmentally friendly properties are more sought-after. New builds are often the greenest but we’re finding they need to achieve higher rental figures as a result of expensive build costs, so retrofitting older properties shouldn’t be discounted. Those who own or manage an established building are advised to contact us to explore how to maximise its value.”
Where units have remained unoccupied, diversification is key. Bobby comments: “Units that aren’t doing as well might be better suited for alternative uses. We’ve seen some industrial properties or out-of-town offices becoming salons, Pilates studios, physiotherapists, gyms. Parking and accessibility are the main ‘wants’ so if you can offer this, it’s worth considering an alternative use for your property.
“Of course the hottest thing right now is Padel. Unfortunately, there is not enough suitable properties, and for those that are, they need to secure planning change of use from industrial to leisure, which is not always viewed preferably by some local authorities,” adds Bobby.
The retail market is more challenging. “There is still an appetite for people to open up shops, salons, etc but not in city centre locations,” says Pru. “Destination style centres, or market towns like Market Harborough, Oakham and Stamford are all doing well, with units on these high streets attracting widespread interest.”
