MINI factory units in the Kettering area are witnessing very high levels of demand – but the supply side remains very low indeed.
Fraser Cruickshank, working within the Commercial Agency division of Budworth Hardcastle has been involved in a number of transactions on units in the size range 1,000 to 2,500 square feet.
“The smaller end is really no bigger than a four bay garage,” said Fraser. “For a number of start-up businesses looking to take their first step into operating from their own premises these sizes are ideal. We have got our clients to co-operate in making the actual process of signing a lease and providing access as user friendly and swift as possible and consequently have witnessed a steady flow of lettings.”
Certainly landlords who hold this type of property have done very well over the last five years. In 2010 this type of property was letting at £3.50 per square foot. Now, well-presented space is achieving rents of around £6.50 per square foot.
There were a significant number of start-up businesses formed as a consequence of the financial crash at the end of the last decade. Many of these businesses have now evolved to a point where they need their own premises. New development of this type is rare. The cost of building mini units is significantly higher than the cost of building larger industrial space. It is unlikely, therefore, that new build space will be available any time soon. For developments offering this size range to be viable, rent levels are going to have to be around £8.50 per square feet.
Recently, Budworth Hardcastle have let Unit 4 Saxon Park on the southern tip of Corby at around £7.00 per square foot. A much older courtyard scheme at Maylan Court has recently seen a 1,400 square foot unit let at around £6 per square foot. A 3,000 square foot unit further East at Thrapston is also under offer at just over £6 per square foot.
Budworth Hardcastle dealt with all these transactions and will shortly be marketing another 1,100 square foot unit at Saxon Park where they will be seeking a tenant for a new five-year lease term.
Budworth Hardcastle operate from a network of offices across the region offering agency, lease advisory, property management and building consultancy services.
For further information contact Budworth Hardcastle on 01536 483400.