Commercial property market conditions in Basingstoke are expected to gradually improve in 2013. This is the prediction of London Clancy director Mark Clancy, who is predicting an increase in business confidence as well as companies taking action on investment decisions that had been delayed.
Clancy recently stated, ““The brakes are not off, but there are grounds for optimism when considering some of the major investments that are being made in our area such as Sainsbury’s new 600,000 square foot distribution depot in Basingstoke.”
He also pointed to other examples where well-established companies have expanded their operations or relocated to the area. Specific examples cited by Clancy were HCR at Belvedere on Basing View and wine merchants Berry Bros & Rudd at Houndmills.
The activity is being driven by market expansion and the need to reduce costs and achieve higher efficiency. Flexible, short term leases and regular breaks allow businesses to review their property requirements more regularly.
The current property market in the M3 and M27 corridors offers good value for both occupiers and owners.
Clancy commented that there has been increased development activity in recent months. He noted that it has been “primarily occupier-led” but that he hoped it would be the start of a trend that would continue over the rest of the year as the government went ahead with its plans to increase spending on infrastructure projects and introduces a three-year business rates exemption for unoccupied new developments.
The commercial property market will benefit from a relaxation in the availability of finance, either through the Funding for Lending initiative that is already in place or the proposed £1billion in new funding from the government’s new business bank.
Clancy also stated that the money coming into the central London property market from overseas funds may benefit the region.
The industrial and warehouse property sector will continue to perform well in the local market. The office market will continue to struggle due to the over-supply of secondary space as owners consider alternative uses and conversions. Lack of Grade “A” space will keep headline rents in the £17-£20 per sq ft range.
In common with most locations, 2013 is expected to be another tough year for town centre retailers. This will come as no surprise but, with the overall picture looking brighter than this time last year, Clancy’s optimism does not appear misplaced.
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