Timing, as they say, is everything. This has always been the case with property transactions and over the last few years has related directly to occupiers being in the ‘right place at the right time’ if they have a requirement when stock is available, given the low levels of supply that we have endured recently.
The phrase is just as appropriate from a landlord’s perspective when minimising void periods between lettings to try and ensure near continuous income.
In a deal just completed by Tim Gilbertson of FHP at Castle Donington he has managed to create both a very happy landlord and very happy tenant, having found for the landlord an occupier who has moved in the day after the former occupier vacated!
Tim Gilbertson commented:
“Deals come in all shapes and sizes and it is not always the biggest that are the most satisfying. This latest deal completed at Castle Donington sees just under 40,000ft² of high calibre space let in a significant deal but the satisfaction here has come from the speed with which, since marketing started, we have been able to encourage interest in the building and most pertinently the speed with which we are able to conclude a transition with the new occupiers, Breezemount.
Satisfying on two counts as the new occupiers moved in the day after the former occupiers moved out, thus creating no void period for our client. Secondly though equally satisfying as Breezemount have been desperate for space in the region and in a market where such large units are in short supply it is great to be able to help them find a new home to satisfy new contracts and the growth of their business.
This has been a spectacular deal all round with teams on both sides of the fence working feverishly to ensure completion of a quick deal and rapid occupation being given literally minutes after vacation of the building by the former tenant.
Yet again this throws up the continuing issue of lack of supply in the market place and how as a result rents are rising, capital values are certainly increasing too and good quality space is often oversubscribed.
Some may have concerns over economic stability and where as a nation we are heading, but for the East Midlands at least good quality larger end warehouse or manufacturing stock is still hugely sought after and rising capital and rental values, reduction in lease terms and in particular in this case the eradication of a void period displays best the strength of the market.”
The deal concluded allows Breezemount to continue their business expansion and service a new contract in the region. Managing Director Aaron Shields commented:
“We’re delighted to have secured a modern distribution warehousing facility at Willow Farm, with time very much of the essence it was great to get the deal done, despite the challenging timeline!
Our new operation will initially bring around 80 new jobs to the Castle Donington area and thanks to the great transport links we’re looking forward to supporting further growth and expansion of our logistics and home delivery services across the Midlands from our Willow Farm site.”
Tim Gilbertson concluded by adding:
“This deal combined with three further north up the motorway means that I have moved about 160,000ft² of space over the last couple of months in terms of high calibre warehouse or production facilities on the M1. Demand is still out there for this trend to continue but sadly space is not and with a number of unsatisfied requirements regularly ringing me I would love to have the ability to offer any new space to the market.
Old, new or anywhere in between if any landlord’s or vendors have space they want letting then certainly now is the time to act as there appears to be a real appetite from occupiers in the market as we start the long run up to the end of 2017.”
