Monthly Commercial Blog 

A further positive month in the commercial property market across our area according to the Royal Institution of Chartered Surveyors recent report with demand for commercial premises rising.

The Bank of England’s Agent’s Summary of Business Conditions for June 2011 also report encouraging signs “…… that construction output had grown a little compared to a year earlier. Building of new retail outlets, budget hotels and warehousing continued to support the level of activity, along with some large public sector infrastructure and transport projects. There had been a small pickup in house building and there was a significant increase in new office space under construction in London.”

It is very easy to become despondent as regards the economy generally and unfortunately the media do concentrate on the bad parts however in our opinion there is a glimmer of light at the end of the tunnel which is already starting to show in the local commercial property market.

In these difficult times it is also most important to get the right advice from your Surveyors and accordingly valuation and property disposal advice should come form a qualified Surveyor, to this end the Royal Institution of Chartered Surveyor has introduced a Valuer Registration Scheme, now mandatory for all Surveyor carrying out formal valuations – so look out and check your Surveyor is registered.

In light of the difficulties for business in realising funds to purchase property, activity has been significantly reduced over the last couple of years, however recently we have seen a number of sales agreed to supplement a good period of letting activity across the sectors, also we are seeing a marked increase in the level of enquiries and viewings across the sectors which we hope will transfer into deals as business start again to acquire space. The particular area of focus is a good number of SME’s (Small and medium enterprises) and start-up business – including retail.

Conversely activity in the freehold market has reduced, due to lack of confidence and availability of finance. Its is however still very much a tenants and buyers market and it is essential that vendors and landlords present their properties in the best light both within the property and in marketing especially with the internet.

We have recently introduced the use of “You Tube” in promotional video and photographic imagery, tied to both our own web site and through e-editions on the Stourbridge News, this is going down well with those disposing of property but also making the occupiers search for premises easier and far more accessible – we are also now looking closely at various other forms of e-marketing all of which is becoming increasingly important in making your property stand out from the crowd. These initiatives are leading to a significantly higher level of buyer / tenant interest.
 

Alan K Knight FRICS Head Of Commercial Walton and Hipkiss – Stourbridge   01384 397 797