Jonathan Blood of Wareing & Company highlights the resilience of south Warwickshire’s market
Despite the uncertain economic backdrop, the commercial market in south Warwickshire is still proving resilient.
There have been a number of transactions that have taken place in our region as its attractive towns and central location are still proving to be a great draw for many businesses despite external pressures.
The retail and leisure sector, having undergone a rental re-alignment, continues to be popular especially amongst food & beverage operators which shows the confidence they have in the region and the customers they can attract.
The industrial market remains strong with high demand for both leasehold and freehold stock of good quality. This has been evidenced in the launch of the re-development of Welton Road, comprising three 2,500 sq ft units and one 3,000 sq ft unit, all of which are receiving high levels of interest.
And the office sector is seeing a bigger focus on quality units rather than pure square footage, with new occupiers willing to pay a little more for a high-quality space with the aim of enticing employees back into the office after the COVID era.
A key example of this is a deal we completed on behalf of Thomas Flavell Solicitors, a growing law firm in Leamington Spa.
The firm is moving into 19 Waterloo Place, a fantastic office building in the town centre in its own right – but director Jamie Connolly is refurbishing the office to a high standard, embracing open office space, hot-desking, and collaborative breakout areas.
These kinds of offices are becoming much more common in the market, reflecting the demand from occupiers.
However, investment deals have cooled slightly given the increases in interest rates and the market is still awaiting the ‘new norm’ in terms of yields. That being said, and in light of last week’s Bank of England base rate announcement, I would anticipate market confidence to receive a boost going into the fourth quarter of this year.
As we head into the end of Q3 and prepare for Q4, we are expecting an increase in activity across all aspects of the commercial market, and are looking forward to help businesses and investors find the right properties for them across south Warwickshire.
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