2014 could be the strong year for business regeneration as demand for commercial property in Coventry and Warwickshire is growing – and could soon outstrip supply.
As confidence in the economy increases so does the number of new business start-ups and expanding companies looking for local property to rent or buy.
Simon Hain, a director of Leamington commercial property consultants ehB Commercial, said there was growth in demand across all commercial sectors – retail, office and industrial.
In recent weeks ehB Commercial has witnessed a mushrooming of larger commercial deals on its books, including a 18,200 sq ft office sold to the Midcounties Co-operative to further expand on Tachbrook Park, and the letting, with deposits paid, on 13 of the 14 new start-up business premises on the new Trident Park development – before any have even been built!
“We have seen an organic and sustained growth in interest in commercial premises in the Leamington area, which is always a good sign of economic recovery – but it is too early to pop any champagne bottles yet,” said Mr Hain.
“We could soon see a situation where demand outstrips supply as stocks of such properties are dwindling and there is too little to choose from,” he said.
“In recent years it has been a buyers’ market with office values, for example, falling below the actual build costs. Businesses have been offering substantially less than the asking price and negotiating significant reductions on rent.
“This has led to many landlords being reluctant to let or sell as they wait for the market to pick up. Well that time has arrived, or at least we are in the early stages of a recovery. The market is definitely thawing and, as the economy has done much better than expected, there is more bank finance out there.”
The traditional high street – which has flat-lined in some parts of the UK because of the economy – has been buoyant in Leamington.
Mr Hain added: “In recent weeks we have been so busy, particularly in the retail and office market. We have successfully let six Leamington town centre shops, which is good news for a sector that has had some bad press. However, this could be against the national trend, because Leamington is very much a destination location for shoppers looking for something different.”
“Likewise, start up businesses are enjoying a revival with the majority of Trident Park already let before a sod of earth has been turned – they are not due to be completed until the middle of 2014.”
ehB Commercial has again been named Warwickshire’s ‘Most Active Agent of the Year’ for a record fourth time by leading trade journal Estates Gazette. The magazine also named ehB’s Victoria Mawer as the county’s ‘Deal Maker of the Year’ – the second time she has won the award.