Press Release – 14/12/06 |
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SHROPSHIRE OFFICE PROPERTY MARKET 2006 Pooks Commercial Property Consultants report 2006 as a busy year for sales and lettings of office space in Shropshire. The continued development within Shrewsbury Business Park on the eastern side of the town at Emstrey has offered buyers the opportunity to invest capital in new, high specification office accommodation. As with previous years, such buyers include pension funds and local investors looking to let the space. Also, following on from last year, properties have been sold to owner occupiers, with typical sales arranged by Pooks including Finitor House 4,500 sq ft (418 sq m) to Barbers and Callisto House 6,000 sq ft (555 sq m) to the Community Council of Shropshire.
In the meantime Alaska Property Group will be developing two new buildings totalling about 20,000 sq ft (1850 sq m) at similar rents for occupation in early 2008.
Despite many local businesses now favouring out of town offices, there has been an increase in the demand for small offices in Shrewsbury towards the end of 2006. The refurbished office developments at Sabrina Court and Old Bank Buildings are both now fully let, while Pooks have also secured lettings in High Street, Wyle Cop and Claremont Hill. Generally town centre rents range from £8 to £11 per sq ft. In the Telford area rents for small offices in the conurbations such as Wellington, Oakengates and Madeley have ranged from £6.50 to £11 per sq ft. The county's largest office block, Telford Plaza, and a proposed expansion of Central Park will offer a wider choice than has been available in the town for some years. In Shropshire's market towns a lack of town centre office space and parking has seen demand rise for purpose built business parks. Construction is under way on the Ludlow Eco Park, an "environmentally friendly" development which provides an excellent 'BREEAM' rating Developed by Shrewsbury-based Sherpa Properties these offices, which are currently for sale, will provide units ranging from 1,450 sq ft (135 sq m) to 5,176 sq ft (480 sq m). There is very encouraging early interest from both owner occupiers and investors at sales prices from £115 per sq ft.
Looking towards 2007 Pooks expect to see continuing steady demand for freehold offices throughout the area with a rise in lettings as demand takes up the supply of new space that is available. For further information contact Alessio Dyfnallt, Surveyor, at Pooks Commercial Property Consultants – 01743 276633.
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This activity on the Business Park has resulted in approximately 35,000 sq ft (3,250 sq m) of available office space to let, along with over 20,000 sq ft (1,850 sq m) scheduled for completion by summer 2007. Prime rents currently stand at £13 per sq ft and are expected to hit £14 per sq ft next year as Redstart Construction's 'Ptarmigan' building, currently under construction becomes available for fit out in the Spring.
Another area that has attracted interest from buyers is Morris Property's Longbow Professional Centre at Harlescott, where all units have now been sold reflecting prices from £110 per sq ft Another recent development in the northern side of Shrewsbury, Charlesworth Court in Battlefield, offers a similar high specification at a competitive rent of £10 per sq ft p.a.
Whitchurch's Marlowe Court, a similar development, is now fully occupied and provides high quality offices and workshop space. Dependant on specification, prices started at about £90 per sq ft. This scheme by Cobra Properties now supports about 30 jobs. Space at nearby Nicholson House has also been let and 1 Marlowe Court is currently for sale as an investment.