Martin Zaki, who is the Head of Agency in the Wolverhampton office of Towler Shaw Roberts, reflects on the local commercial property market:
The commercial property market in Wolverhampton and surrounding areas remains in good shape, particularly the industrial sector, following a productive first half of 2018.
Limited stock coming to market is an ongoing issue, however what is available continues to generate high levels of interest.
There remains a huge demand for freehold industrial properties, leasehold perhaps not so much, but owner occupiers are always looking for ways in which they can expand, which is a positive.
TSR’s Wolverhampton office were pleased to complete the sale of just over 35,500 sq ft of industrial space at Riley Street in Willenhall, which had a guide price of £975,000.
The site received plenty of interest and we negotiated the best purchase price for our client through a sale to a local investor. This instruction has subsequently proven to be the catalyst for a host of other lettings and sales in the area.
Given the shortage of stock, there is often a fast turnaround for highly sought-after industrial properties when they become available.
The office market, particularly in Wolverhampton city centre, continues to be oversaturated, but we have had significant success in selling three office buildings on Compton Road, two of which have the potential for residential development, while the other was purchased by Concero, an IT company, as part of its expansion.
TSR also handled the letting of Salisbury House, a Grade II listed building on Tettenhall Road. This means a return to one of Wolverhampton’s most distinguished office buildings for a high stature international company.
Considering that Wolverhampton is not essentially known for its large scale office occupiers, there was initially an element of concern over just what the level of interest would be in a substantial building offering just under 10,500 sq ft of accommodation, but we were able to reach agreement with the new tenant.
An abundance of retail space remains available in Wolverhampton, with the opening of Debenhams in the Mander Centre last October perhaps not providing the boost which was anticipated locally in this sector.
Demand is certainly very high for residential development opportunities while we are also circulating details to known clients for several off-market investment and development plots around the city.
Some provide residential development opportunities while there is also scope for potential industrial redevelopment, large scale office complexes and residential HMOs with good levels of income.