Press Release – 14/12/06 |
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SHROPSHIRE AND MID–WALES INDUSTRIAL PROPERTY MARKET 2006 Pooks Commercial Property Consultants of Shrewsbury have seen an active industrial and distribution property sector in 2006 as a number of new schemes across the county were completed. At Battlefield Enterprise Park in Shrewsbury there has been a buoyant level of enquiries for units up to 485 sq m (5,000 sq ft) but little stock currently available following the completion of Lancroft Developments' Henry Close scheme, where sales for basic units have now reached around £65 per sq ft. With the conclusion of other developments at Knights Way and Stafford Court the only land remaining appears to be reserved by Advantage West Midlands for food manufacturing. There is some demand but the relatively high construction costs for this use are off-putting to some of the expanding local companies in this sector. Some of the existing stock is being bought for redevelopment or retained for short term letting pending schemes in the future. On that basis we negotiated the sale of trade counter space in Spring Gardens, Shrewsbury for incorporation into the Flaxmill scheme by English Heritage and the Borough Council, and at Nettles Lane Frankwell another trade counter unit has been let on a short lease to the contractors for the new Theatre Severn, also under development for the Council. Outside Shrewsbury the smaller industrial markets seem to tell a similar tale of shortage of supply, with towns such as Oswestry having few void buildings and a healthy demand by light industrial and trade counter uses. Pooks have just received instructions to market 5,700 sq ft (570 sq m) of space on Mile Oak Industrial Estate and we anticipate that the majority of interest will come from local firms looking to expand. Other lettings in 2006 saw Wem Business Park virtually 'full' at rents of £4 per sq ft and at Whitchurch the Marlowe Court development of offices and warehouse units by Cobra Properties was completed. At nearby Prees Heath 5,000 sq ft (465 sq m) was let to Bow Plus Archery.
South Shropshire's industrial market is expanding with clients Sherpa Properties offering small workshop units for sale at Craven Arms Business Park, (the former Long Lane Industrial Estate). With units of 1,450 sq ft (135 sq m) for sale at prices from £110,000, initial interest is encouraging, albeit individual occupiers' special needs can restrict speculative development. Of course in industrial terms Telford is the powerhouse providing the majority of the county's 'big' sheds. 2006 has seen several factory units sold for refurbishment or 're-badged' for distribution use, as a reflection of national trends away from traditional manufacturing. Following the acquisition of a 100,000 unit at Stafford Park for retained clients last year Pooks, have now been instructed by them to dispose of their existing units in Newtown (Mid Wales).
Looking forward to 2007, we would envisage a similar picture of an active but not overheated market driven primarily by the demand for freehold purchase by smaller companies. With the economy continuing to look stable despite some interest rate rises the costs of meeting our global environmental responsibilities are now being seen as the major additional burden on industrial production (apart from wages) so that it looks as if the trend to less environmentally demanding trade counter and distribution occupiers will continue. For further information contact James Adney, Surveyor at Pooks Commercial Property Consultants – 01743 276633.
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When we wrote this report last year the Burnside Business Park at Market Drayton was under construction by our clients Lancroft and PRH Holdings. Sales here have been a roaring success in sizes from about 2,500 sq ft (230 sq m) upwards and prices from £55 per sq ft. The final release is of units to let at rents from £4.50 per sq ft and as at the time of writing about half are let or under offer.
Between Telford and Shrewsbury, Atcham Business Park is also virtually full, with one unit of 20,000 sq ft remaining to let. The owners have recently submitted a planning application to expand this popular and well established estate.
In Mid Wales the change in emphasis from low value manufacturing has led to a number of units becoming available. At Mochdre industrial Estate, Newtown, Pooks are currently marketing two units totalling about 45,000 sq ft (4,185 sq m) at very competitive rents compared to more urban locations. With a reliable local workforce Mid Wales is still able to offer a good 'total package' to employers seeking expansion or relocation. Smaller units at Four Crosses have been taken up at around £3 per sq ft.