OVERVIEW ON THE NOTTINGHAMSHIRE INDUSTRIAL PROPERTY MARKET

Market Overview News

Whilst the talk is all of the credit crunch and a general tightening in the market, I am glad to be able to report that the industrial team at FHP have disposed of nearly 600,000 ft² of industrial space in the first quarter of 2008.  This is an excellent start to the year and shows the resilience of the industrial property market in and around Nottingham.

Our developer clients have continued to build on a speculative basis and we continue to see take up on Wilson Bowden Developments at East Midlands Distribution Centre, near East Midlands Airport,   Blenheim Park, off J26 of the M1 and at Gateway 28, near J28 of the M1.  Rents have continued to rise with rents of around £5.75 per ft² regularly being achieved in and around Nottingham albeit a little less than this in the northern part of the county.

Notable lettings have included former TGG warehouse off the A52 at Grantham of 334,000 ft² which has been let to Grantham Books who are a subsidiary of the Random House Group.   Also at J28, Richard Walker and Chek Whyte’s, 109,000 ft² warehouse has been let to Door Stop International which is a subsidiary of Synseal Holdings Limited.

The development of the Castlewood Business Park by Wilson Bowden Developments next to J28 of the M1 is now well under way and the steel frame work for the first phase is now fully erected which comprises units of 40,000 ft² and 30,000 ft² which can be split and they are already securing significant interest.

It will be interesting to see how the advent of business rates being payable on vacant industrial property affects the market for speculatively developed units and it is likely that the developers may well become more cautious in what many perceive to be a more mixed economic outlook which may well cause there to be less development which may lead to increases in rental levels and capital values for new property.  Also it is likely that industrial sites which are approaching being ready for redevelopment will be demolished much sooner and thereby reducing the stock of more economical space as well.