AS we entered the summer ‘silly’ season where slowdown of demand and timing to complete relatively simple transactions becomes ever difficult due to holidays and a general move away from decision making, the market was further complicated by the United Kingdom’s referendum vote to leave the EU.
We now have gone through July and August, whilst we did experience a reduced level of transactions, there was a steady level of enquiries which was unexpected given the time of year.
Over the past 6 weeks in Kettering alone, we have completed 6 freehold and a further 10 leasehold transactions.
AS we entered the summer ‘silly’ season where slowdown of demand and timing to complete relatively simple transactions becomes ever difficult due to holidays and a general move away from decision making, the market was further complicated by the United Kingdom’s referendum vote to leave the EU.
We now have gone through July and August, whilst we did experience a reduced level of transactions, there was a steady level of enquiries which was unexpected given the time of year.
Over the past 6 weeks in Kettering alone, we have completed 6 freehold and a further 10 leasehold transactions. These completions were spread across all commercial sectors. In total this was more than 10,000 square feet of deals a week!
In addition, we are experiencing an increase in secondary investments being offered to the market. The EU Referendum result has thus far not affected the appetite from investors for these types of opportunities. We, Berrys, are shortly marketing a couple of High Street multi-let investments where there is opportunity for asset management and rental growth.
Nationally the property price trend is down around 0.9% for the month of July, however, our experience locally in Kettering has been very much contrary to this. Due to strong freehold and leasehold demand in retail units, we have found that rents being achieved are reflecting little or no reduction from quoting prices. Demand over this period has meant that marketing periods have been limited and stock levels have reduced to minimal levels.
Not surprisingly the decisions that are being made by the larger companies, those that import and export or have foreign parent companies are slightly at odds with the rest of the market. Our expectation is that these transactions will most likely proceed, albeit towards the end of the year or at such time when the effect of the EU Referendum is understood better.
Overall, we are finding demand for all sectors of commercial property and land in and around Northamptonshire is strong with both occupiers, investors and tenants continuing to plan their businesses into the future. Supply of commercial opportunities has also increased with a number of sites commencing infrastructure or on site works underway. This will lead to an increase in design and build opportunities available across the County. Opportunities for new build warehouse accommodation will be released to the market later in the year.
If you are a landlord or an occupier of commercial property we would be very interested to hear from you. We have a dedicated commercial agency team spread across the County and region who offer a professional and a complete service. Please contact James Fulton on 01536 517777