Commercial tenants actively searching for property in the Bournemouth, Poole, and Yeovil area are finding it difficult to find quality properties available, and the lack of new construction projects means there is no relief in sight for the chronic shortage of available properties. Recently, Euro Car Parks decided to sign a 10-year lease on an 11,157 square foot industrial/warehouse unit which includes good yard space on the Lynx Trading estate in Yeovil.
Landlords can make repairs to update their properties, but this is part of regular maintenance, and is not going to solve the issue of lack of inventory. New businesses looking to locate in the area may rethink their plans if they are unable to find suitable premises for their business. In the worst case scenario, they will look elsewhere, which will be a blow for the region’s economic recovery.
The demand for commercial property may eventually trigger new builds. According to the latest quarterly index by IPD, investment in the commercial property sector has sunk to a new low. Net investment in properties outside of London was £161 million during the last quarter. This is the first time the value has sunk into the negative range since March 2009.
Investors must start to put money into commercial projects such as warehouses, shops, and offices, or communities will not be able to get on the road to recovery from their current economic difficulties. Investment in real estate is viewed as risky without consumer demand, but in this situation there is a ready market for new commercial buildings. If developers can get projects off the ground, filling the buildings should not be an issue. The question remains how long this situation can remain stagnant until something has to give.
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