Pooks Commercial Property Consultants report increased activity towards the end of 2009 after a slow start to the year.

One of the more notable lettings on Shrewsbury Business Park included that to NFU Mutual, who acquired around 280 sq m (3,000 sq ft) at Mutual House. More recent lettings were also completed at Willow House West and The Alaska Building. There is however, still an excellent range of office space available from 1,000 sq ft up to 18,000 sq ft. Mount McKinley (18,000 sq ft), which was developed by the Alaska Property Group, is the latest new build to be completed and offers probably the largest out of town office for 20 miles. Two further offices of 7,000 sq ft each on Anchorage Avenue are being developed by Matrix Construction Ltd, with building completion due in the new year. Rents on the park currently range from £10 - £14/sq ft, dependant on lease terms and specification. At the time of writing there is occupier interest in each property.

Sales and lettings at some of the other out of town office locations such as Battlefield Enterprise Park and Oxon Business Park have been slow. However there was strong interest in Charlesworth Court (Battlefield), an office investment totalling about 6,500 sq ft, which was sold off an asking price of £575,000.

Shrewsbury's older, edge of town, office buildings have proved popular in 2009. Pooks, acting on behalf of Telereal Trillium, arranged two of the largest office lettings in Shrewsbury this year at Whitehall on Monkmoor Road. The new Shropshire Council took 23,000 sq ft over 4 floors, while the Shropshire County Primary Care Trust opened its new 9,000 sq ft GP-led healthcare facility. St Michael's House, a former school on St Michaels Street, which is currently used as offices is about to go under offer off an asking price of £585,000. Both properties appeal in that they benefit from being within walking distance to the town centre, offer good parking provision and have bus stops outside.

Following Carter Jonas's re-location to Sansaw Pavilions, Yarrington Ltd (marketing and multimedia) have taken a further 2,700 sq ft in the East Pavilion. Sansaw Pavilions, near Hadnall, offer large floor plates, serviced to a high specification within a stunning rural setting. There are about 7,500 sq ft remaining here, with rents starting from around £12/sq ft.

The demand for smaller town centre offices noticeably dropped in the first three quarters of the year, although this was tempered by an increase in demand for Shrewsbury's larger period buildings. Lettings by Pooks at Murivance House on Town Walls (1,800 sq ft) and Priory House on Priory Road (4,000 sq ft) both Grade II listed buildings, as well as 5 Claremont Buildings (2,350 sq ft) and Courtyard House on St John's Hill (1,348 sq ft) demonstrate that plenty of users still find town centre accommodation preferable to out of town space. Smaller town centre offices remain available at locations such as Wyle Cop, High Street, Butcher Row, Dogpole and Longden Coleham, with rents from £7.50/sq ft.

In Telford, Southwater Event Group in partnership with Telford and Wrekin Council, have submitted a planning application for the comprehensive re-development of land at Southwater in Telford Town Centre. The £250million development will include offices, residential, retail and cafes, restaurants and bars. Subject to planning, approval work could start as soon as Autumn 2010. In the traditional town centre offices such as Telford Plaza rents remain at around £10 - £13/sq ft, while in the district centres such as Wellington and Oakengates smaller suites are available at £6 psf.

Sales at Shrewsbury-based Sherpa Property's development at Ludlow Eco Park have continued, with Unit 8/9 The Business Quarter completing earlier in the year. This now only leaves one unit of 5,000 sq ft available for sale at £650,000 or to let at £55,000 per annum. Units and 1 and 2, 1,453 sq ft each, were both let this year off an asking rent of £13,000 per annum.

Just over the border into Herefordshire, Leominster Business Plaza at The Leominster Enterprise Park continues to attract buyers, with Unit 6 (1,450 sq ft) now sold with the asking price being £160,000. Two further units of 1,450 sq ft each are under offer with another 8,000 sq ft now available on pre-sales at £115/sq ft.

After a quiet start to 2009, office lettings and sales in Shropshire have increased during the second half of the year. Construction on the out of town office developments has slowed,, although this is expected to bring supply more in line with demand over the coming 18 months. As mortgage lending loosens (albeit slightly) and for as long as rates remain low, we expect to see a return to a more competitive investor market next year, together with more optimism from occupiers.

Credit to:
Alessio Dyfnallt at Pooks - 01743 276633.