GROWING DEMAND FOR PROPERTY
Is the UK in recession or not? On the one hand, Government statistics suggest that unemployment has fallen by 35,000 over the course of the last month. On the other, The Office of National Statistics suggests that we have had two quarters of negative growth and that, technically, we have been in a recession. Ordinarily, these two sets of data would not occur at the same time but we are not living through ‘ordinary’ times. Despite the fact that the UK’s principal trading partners are in Europe, UK businesses are not completely sucked into the mire that is afflicting European economies. The reasons for this are unclear but the end result is most pleasing.
Leaving aside retail operations, the general consensus amongst the majority of business owners throughout the local area is that sentiment and confidence is improving gradually. Investment decisions to proceed with new commercial property are only made when businesses are confident about the future. This confidence is increasingly evident in the commercial property market where there is growing demand across the office, industrial and manufacturing sectors for companies to own their own freehold premises. This demand for freehold property arises out of a number of market characteristics including:
• Interest rates, which remain at an all time record low.
• Banks are increasingly prepared to lend to owner/occupier businesses. • Improving confidence amongst business owners.
• A perception that property values have started to recover from the falls in 2008 but still represent good value compared against the cost of buying a new property.A company’s desire to own their operational premises makes a good business decision: in the long run, the cost of buying is no more expensive than the cost of leasing, with bank lending rates at current levels. Once a commercial mortgage is paid off the business then owns an asset which, ultimately, improves the value of the business. However, the number of properties that are available freehold are reducing: with no new speculative development commencing in our region, freehold stock levels continue to decline and there are limited choices for many business owners once they have made the decision to buy.
It is, therefore, essential for businesses that are contemplating or wishing to buy their own property take professional advice. BNE have a number of freehold properties for sale and also are aware of situations where investors would be prepared to sell but where the same investor’s are hoping to secure a letting.
Currently freehold instructions include 42,000ft² at Pytchley Lodge Road, Kettering, units of between 4-25,000ft² at Alpha Court, Corby and individual units throughout Corby, Kettering and Wellingborough. Parties that are interested in searching for freehold property are urged not to delay, since the number of properties that are available is reducing.
For further information on commercial property, please contact Andy Griffiths at BNE on 01536 517777 or firstname.lastname@example.org