GROWTH and the recent improvement in the office market in Northamptonshire and North Buckinghashire could be stifled through 2015 due to lack of supply, report specialist commercial agents TDB Real Estate.
The office market over the last 7 years has been exceptionally difficult with very little demand and exceptionally few transactions being completed, not just in Northamptonshire, but nationally. Nevertheless the County, Northampton and the surrounds have shown encouraging signs of growth as take up has increased over the last 12 months. However, that improvement could result in a major shortage of good quality grade A stock.
TDB consider therefore that the strengthening market is potentially being put at risk by a lack of supply, particularly in respect of the smaller high quality offices, resulting in those properties that do become available being taken up very quickly indeed.
Victoria Robinson, surveyor at TDB Real Estate says “ With no speculative development having taken place really since 2007, the demand for office space has had to rely solely on the existing stock, which is diminishing at a concerning rate. We have now have a situation where certain requirements just cannot be satisfied at all, and whilst rental levels are improving, they are still a long way short of where they need to be to sustain speculative development of smaller units’’.
Demand for rural offices has increased again to the point where the vast surplus experienced in the market over several years is diminishing fast. TDB Real Estate have been involved in numerous office transactions but particularly at Quinton, Overstone and Tithe Farm, Holcot, where suites from 250 Sq ft have been let.
Victoria went on to say “ There are many advantages of rural schemes, not least the abundance of car parking that many offer over the established town centre of business park locations. Also many have invested in advanced Broadband connection as often the existing infrastructure is not sufficient to satisfy occupiers requirements. This is especially true of Quinton Green and Stowe Castle, which after considerable investment by the owners, where a broadband service can be offered as good as some of the towns established business parks can be offered’’.
If you have a requirement for offices, TDB Real Estate would be please to talk to you on 01604 604020 or 01908 726 022