BERRYS recently worked with a local landlord to purchase a popular two-storey office building on Kettering Venture Park; at the time of the transaction the property was sold as a fully let investment property with long-standing tenants.
However, shortly after the property completed, one of the existing tenant served notice, leaving half of the property vacant and in danger of costly void periods.
Berrys were then instructed on 16 April this year to locate a new tenant and negotiate the agreement. By 16 May the property was under offer and solicitors had been instructed to proceed with the new tenants.
Locating a new tenant in a short period was challenging but also key to the viability of the investment to the landlord – void periods are never ideal in property but they add a particular challenge at such an early stage of the property ownership. As such, it was crucial to return the property back to its original full occupation as soon as possible.
Luckily, Redfish Systems were seeking additional space in the location due to growth within their business. Redfish Systems are a software as a service provider, working with a diverse range of clients within a variety of industries (childcare, recruitment, publishing, energy) as well as providing other forms of bespoke IT related solutions.
The landlord was happy with the swift resolution: “Berrys assistance in the quick re-letting of my vacant commercial unit was greatly appreciated – they advertised the property, sourced tenants, negotiated the agreement and passed to solicitors in less than a month which really helped take away the stress of having the property empty. Thank you to Kevin and his team for the help.”
Despite the potential for the unexpected tenant vacation as experienced by this landlord, commercial property investment remains a viable and increasingly popular option for individuals seeking a high return on their capital.
Royal Institution of Chartered Surveyors UK Commercial Property Market Survey shows a rise in investor demand for UK commercial property across all sectors, with 18 per cent more respondents reporting increased enquiries in the first quarter of the year.
Anecdotal evidence from the commercial team across all of Berrys five offices support these survey findings, with Kevin O’Dell from the Berrys Kettering office stating: “We’ve certainly seen an increase in individuals interested in commercial investment, particularly in newer units. There’s a supply and demand issue currently – the demand is high but supply of property to the market remains insufficient, meaning there’s huge opportunity for developers.”
For more information on Berrys’ commercial services, please contact Kevin on 01536 213176.