By Nicholas Roberts
Partner
Drake Commercial
IT has been a busy year for the Northampton commercial property market and in particular the industrial sector which continues to go from strength the strength. To put that into some form of context, take up of industrial space last year was circa 1.36 million square feet which is an increase of 11 per cent over the previous year.
The current strength of the commercial market is drive largely by a lack of supply which has had a dramatic impact on growth in terms of both freehold and leasehold values. A prime example of this is Brackmills Gateway in Northampton. This is an industrial scheme of over 20 units ranging in size from 5,000 – 20,000 square feet. Drake Commercial were involved in the acquisition of the investment which was bought last year by a major institutional pension fund. With our input, the estate has undergone a substantial programme of refurbishment and we are now achieving headline rents of £7.00 per square feet. This is a 55 per cent increase over and above rents being achieved on the same units a little more than two years ago.
This continued demand for industrial space needs to be satisfied by the development of new space but the lack of available land is proving to be a major stumbling block. Drake Commercial are, however, delighted to have recently been instructed as sole agents on one such new development in Brixworth. This once small rather sleepy village to the north of Northampton is now synonymous with high-tech, cutting-edge performance engineering, with the presence of Mercedes AMG High Performance Powertrains Ltd who design and build engines for the Mercedes Formula 1 Team among others. In addition Brixworth also home to Ilmor Engineering another worldwide known engine design and manufacturer.
The scheme that we are involved with is located on Station Road. Known as The Woodyard, the scheme totals 5.5 acres (2.7 hectares) and will provide a range of high-quality industrial/manufacturing and warehouse units from 2,970 to 12,000 square feet, all being located in an attractive landscaped environment incorporating good levels of car parking and circulation areas. The intention is for development to commence on site in Autumn 2018. Quoting terms have yet to be determined.
Further details will be announced shortly but with industrial property vacancy rates of less than five per cent of the total built stock in Northampton, the development cannot come soon enough.
Contact Drake Commercial on 01604 620616 or visit www.drakecommercial.co.uk