Tim Gilbertson, Director in FHP’s Industrial Agency Team reminisced about 2017 with the following thoughts on the industrial and warehouse market:
“2017 will undoubtedly be remembered as the year of Brexit and the panic, chaos and ‘what does it all mean’ air that it created for businesses the length and breadth of the Country.
The obvious reaction for the property market to the turmoil that has been created, you would imagine, would be that deals were limited and transaction numbers down. However, you would be wrong!
Having transacted personally on 700,000ft², as a team we have dealt with over 1.3 million square feet through sales, lettings and acquisitions.
Personally, this is undoubtedly the strongest year I have ever had which goes to show the resilience of the property market and the occupiers within it.
Having worked through the recession and seen the pain that it caused for companies throughout the country a few years previously, I am delighted with the attitude that I have encountered from business occupiers throughout 2017, one of looking at their own order books and business success rather than being unduly influenced by Brexit scare stories.
During the last recession there was undoubtedly a huge negative media influence on occupier’s thoughts whereas what could have turned into a very difficult year has turned into one of great success as occupiers, be they tenants or purchasers, have taken the view that it is business as normal as, quite rightly, nobody really knows what will happen with the markets in the future once (or should that be if) Brexit actually happens.
As a result across the board through our East Midlands patch, 2017 has been a terrifically successful year and personally my best year yet.
What does 2018 therefore hold for us moving forwards? Well, at present it seems continued demand is the order of the day coupled still with a distinct lack of supply of industrial and warehouse space, be it new build, good quality second hand or even basic ‘wind and watertight’ space. I have a list of occupiers waiting for units from a few thousand square feet up to a few hundred thousand square feet ready to take space if the right property comes along but the lack of supply, the lack of choice and the very limited pipeline of opportunities coming forward will again pose problems for occupiers looking to complete moves this year.
As regards Brexit and the economy in future who really knows where we will be in 12 months time but certainly for the first half of 2018 at least the property diagnosis is very much continued demand, continued lack of supply but a market where deals will be done subject to available stock.
On that note, as always I would be delighted to discuss with clients old and new any opportunities to market their space for sale or let or indeed try and assist companies struggling to find new space with acquisition work, as our appetite for deals in 2018 remains as strong as it has throughout the year just gone.
