MARKET CONTINUES TO HOLD UP – DESPITE CREDIT CRUNCH
Eight months (and counting!) into the credit crunch and the Northampton commercial market is
holding up well.
Inevitably purchasers and tenants are more cautious (as are their funders) but with realism on both
sides deals are still being done.
We are seeing a good level of applicants – down only around 10% on this time last year. Many
Companies have seen their businesses grow over the last few years and we are seeing a number of
lease terminations and options to break . In previous years, tenants have been happy to “stay put”,
whereas this year many tenants are keen to explore the possibility of upgrading to better space,
often at no extra cost.
We’ve had several new instructions this month including 21 Albion Place. Comprising an attractive
Victorian office on basement and three upper floors, the building offers approximately 1,343 sq ft. It
has recently been redecorated and carpeted and has the benefit of a number of original features.
Available on a new flexible lease, the rent is only £10,000 per annum exclusive.
21 Albion Place
We’ve also received new instructions at 343 Wellingborough Road where again the offices have
recently been redecorated.
Comprising approximately 956 sq ft in an excellent busy location, the offices, which benefit from air
conditioning and have two car parking spaces are available on a new lease at only £8,750 per
annum exclusive.
343 Wellingborough Road
We’ve also received instructions to act in respect of 73 High Street/2-4 Mill Street Bedford.
Comprising approximately 3,300 sq ft of offices over two floors with its own self contained access,
the property is in an excellent office/retail location in the centre of town and could, subject to
planning, be used as an eye clinic, laser clinic or fitness studio.
Available immediately on a new lease at £21,000 per annum exclusive. Joint agent AbbeyRoss.
High Street/Mill Street Bedford
Whilst demand for freeholds remains strong, we are seeing an increase in the lettings market and as
a consequence we are able to offer several of the offices at Queensbridge, The Lakes, “to let”.
Offices range in size from 1,826 sq ft to 5,090 sq ft and rents are from £17.50 per sq ft.
Existing occupiers include Medigold Health Consultancy Ltd, Cobley Desborough, HRG, Mortgage
Choice as well as our clients Duncan Developments. The specification is excellent to include
comfort cooling, suspended ceilings, recessed lighting, full carpeting, raised floors and fitted kitchens
with dishwasher and fridge.
The scheme has attracted interest from tenants, freehold owner/occupiers and investors and the final
phase will be the last opportunity to acquire small offices at The Lakes development.
So, where next for the market? The residential sector continues to slip and comparisons are being
made with the early 1990’s. In terms of the office market in particular, the comparison just doesn’t
stand up. In the early ‘90’s we had National unemployment at over 10%, 15% interest rates and
locally, over five years supply of office space either nearing completion or standing empty.
This time around we have close to full employment, nominal interest rates at 5% and very few
buildings standing empty. It is precisely because of the problems experienced during the last major
recession that developers and their funders have been much more cautious in terms of the
speculative space constructed. There is therefore now a looming shortage of quality stock.
Tenants and buyers can still get some decent deals but hurry, it won’t last long!