Pooks Commercial Property Consultants report 2008 overall as a positive year for the sale and letting of office space in Shropshire.
Despite the property depression from September onwards, Shrewsbury Business Park has more than bucked the trend, with over 45,000 sq ft of office space being let or sold, up more than a third on last year. The biggest office deal involved the letting of 16,000 sq ft at the Ptarmigan Building to Shropshire County Council, with a complementary letting of Haughmond View (7,700 sq ft) to Mouchel civil engineering consultants. The Juneau Building (4,500 sq ft) was let to Deutsch Bank. The best rents achieved during the past year were in excess of £14/sq ft, with sale prices around £185/sq ft.
Part One of Shrewsbury Business Park’s Phase II which is being developed by Alaska Property Group, is now nearing completion providing a further 18,000 sq ft at Mount McKinley House and 7,000 sq ft at Bering House. Part Two of this phase will include Tenzing Property Limited’s, Temple Point development, which will offer the opportunity to purchase smaller office units from 2,000 sq ft. Matrix Construction’s Sterling House has about 3,500 sq ft of space remaining to let.
Other out of town office locations that have continued to attract interest include Morris Property’s Longbow Professional Centre at Harlescott and the Oxon Business Park. All the units at Longbow have now been let, while there is little space available at Oxon other than 2,000 sq ft at Kingfisher House off Clayton Way, these developments typically attract rents around £10 - £11/sq ft.
Rural offices have taken on a completely new concept with the stunning Sansaw Pavilions scheme at Hadnall, about 5 miles north of Shrewsbury, having recently been officially opened by the Duke of Westminster. Chartered Surveyors Carter Jonas have taken about 5,800 sq ft and asking rents are around £16/sq ft.
The demand for small town centre offices has remained steady, with Pooks securing lettings at various locations, including Barkers Chambers, Claremont House, Bellstone Court, Westgate House and London House, all now fully let. However there are still opportunities
for small businesses and start-up businesses to rent offices in the town centre at rents ranging from £7/sq ft up to £11/sq ft.
Evans Easyspace have introduced the flexible leasing concept to Shrewsbury with their “Enterprise Centre” at Stafford Drive, Battlefield. Brand new small suites are available on a monthly basis, with workshop units and a café also included in the complex.
In the Telford area typical rents for small offices in the district centres such as Wellington, Oakengates and Madeley have ranged from £7 to £10/sq ft. The landmark Telford Plaza complex and other town centre space achieved £11 - £13/sq ft. Plans are still in place for the £250m development at Southwater in Telford Town Centre, with a preferred developer expected to be named next year.
The construction of Phase 1 of The Ludlow Business Quarter development at The Ludlow Eco Park has almost been completed, with only one unit remaining for sale. The developers, Shrewsbury-based Sherpa Properties, expect to begin on Phase II in 2009. This year has seen over 10,000 sq ft let or sold (sale prices around £130/sq ft), highlighting the continued demand from both investors and occupiers for out of town office space in South Shropshire.
Over the border and into Herefordshire, The Leominster Enterprise Park continues to attract buyers, with an extra 9,000 sq ft sold or under offer this year to add to the 7,000 sq ft of offices that are already occupied. Construction is set to continue throughout 2009 with sale prices starting from £115/sq ft.
In general, despite the economic downturn, the office market in Shropshire and Herefordshire has remained busy. Construction on the out of town office developments has continued, which in turn has provided investors and occupiers with a good choice quality office space. Whilst over the coming year we expect to see investor demand drop as mortgage availability tightens, this should give scope for greater interest in leasing.
Credit to:
Alessio Dyfnallt, Surveyor
26 Claremont Hill
Shrewsbury
SY1 1RE
01743 276633.
Email: sre@pooks.co.uk
