News

Commercial property values past peak
By James Buckley - Monday, February 29, 2016 10:13

The UK investment market has grown yet stronger in recent months, with the uncertainty of the election fading and the market’s safe haven status back to the fore amid renewed fears over eurozone stability and stock market volatility, notably in China, according to Cushman & Wakefield’s monthly briefing on the UK investment market.

Tesco's staggering £6.4bn loss........Sainsburys first full-year loss in almost a decade (£72m).........Asda's 4% sales dip in Q1 2015.....all suggest the boom years for UK food store operators is well and truly over.

Bucking this trend however are the discounters, in the shape of Aldi and Lidl, and also the high-end food retailers, M&S Simply Foods and Waitrose.

We have now signed up with Rightmove to maximise the exposure of our Agency properties.  It is a big step in our drive to expand our Agency offering and we have, within the last month trebled the amount of properties we have available and are constantly looking for new opportunities.  The facilities offered by Rightmove has already generated a phenomenal response and fantastic uplift in a number of enquiries and viewings to our properties and we are always looking for further opportunities in this direction.  The Rightmove website enables us to track the amount of interest, a

Rising capital values and strong competition are driving investors to look beyond the major UK cities for quality office stock and potential value, reports JLL in a wide-ranging report focused on which locations will offer the biggest opportunity over the next five years. The report analyses the economic and office market performance of 37 smaller towns and cities giving an insight in to which locations will offer the biggest opportunities.

The government’s two-year deferment of the business rates revaluation will cost businesses in the north of England and the Midlands £2.3bn, according to Bilfinger GVA.
A comprehensive review by Bilfinger GVA calculates what the 2015 revaluation would have looked like if it had taken place when it was originally due today, on 1 April 2015, and compares this to what businesses will instead have to pay over the course of the deferment.

The UK economy performed impressively in 2014, with the latest official estimate of 0.5% growth in Q4 taking annualised growth to 2.6%, the best performing of the G7 Nations. While the outlook for 2015 brings greater uncertainty, both economically and politically, the consensus points to continuing robust growth over the coming year.

Productivity improving as real wages rise

The Chancellor George Osborne MP announced his Autumn Statement to Parliament today. Our initial response focused on stamp duty, small business rates and infrastructure.

Stamp duty

Finally we see long overdue reform to the stamp duty tax system – described by the Chancellor as the most damaging tax of all. Time and time again RICS has called for these changes to stamp duty structure, from which 98% of house buyers will now benefit.

Pub company shares have dropped after MPs voted to end stiff rules that force their pub tenants to pay higher prices than non-tenants for their drinks.
Shares in the two biggest pub chain companies, Enterprise Inns and Punch Taverns, both fell steadily through the day to close down 17%.
The amendment would affect the 20,800 of Britain's 48,000 pubs that are subject to beer "ties".
Non-tied pubs often pay considerably lower prices for their beverages.

All UK commercial property experienced a weaker performance in August 2014, according to the latest CBRE Monthly Index.

Total returns for All Property were 1.4%, mainly driven by the capital value growth of 0.9% over the month. So far this year, capital values increased by 8.1%, resulting in total return of 12.5% over the year to date.

However, rents increased by 0.1% over the month and 1.3% over the last eight months.
August 2014: CBRE UK Monthly Index Snapshot:

The final unit at Copley Enterprise Park, Tadcaster has now been let. The park along with the rest of Tadcaster Industrial Estate are both now fully occupied. Industrial units in and around the Tadcaster area are now a scarce resource, Sherburn in Elmet still has some availability although significant lettings there over the past 12 months has seen their vacant space reduce dramatically.

Last week the government announced the ‘biggest package of business rate support in over 20 years’, as part of the coalition government’s economic plan.

Leeds city centre office take-up in 2013 will easily outperform 2012 and for the first time in six years will be on a par with pre-recessionary levels, reports BNP Paribas Real Estate.
BNP PRE reports 2013 Leeds out of town take-up is expected to reach 440,000 sq ft, also well ahead of last year’s level.

Malcolm Stuart Property Consultants LLP has seen a sharp upturn in demand for well let Commercial Property! Multiple acquisitions for both existing clients and new referrals looking to see some return on their capital employed. With the banks still unmoved on savings rates Commercial Property is once again proving popular following the turbuent times of the recent past.

Mortgage lending soars in May

The BoE has said that lending to businesses in the UK has fallen by a further £4.8bn in the three months to February. That represents a fall of 4.4% in loans to companies and small firms from the same period a year earlier. The Bank also said that the mortgage market was "broadly unchanged". The BoE's figures show that loans to construction firms and house builders were particularly weak. Lending to the real estate sector fell by 5.3% in December 2012 from a year earlier, the sharpest drop for more than three years.

We are shortly to be instructed on a verging 50 acre B1/B2 and B8 site immediately adjoining the A1 and a major junction.  This will be one of the most accessible industrial / warehouse sites in the Country, with major power supply readily available and excellent prominence to the A1(M) on the sites adjoining the A1. Accordingly, if you have requirements for major space users, please contact James Stuart at this office as a full release of details is expected within the next 4-6 weeks.

Woodhead Investment and Development Services Ltd have been involved in a number of deals in the centre of Wakefield towards the end of the year. Chairman Melvyn Woodhead states that he is confident in the city and its continued prosperity with the recently developed and highly regarded Trinity Walk Development enhancing its retail prominence and national perception.