Planning Ahead for 2015
Posted on 2nd January 2015
By Danny Pinkus, Partner at Robert Pinkus & Co. LLP
The team at Robert Pinkus & Co. LLP would like to wish everyone a happy and prosperous New Year as we look forward to doing some great deals in 2015!
The commercial property sector continues to improve gradually and we are optimistic that this will continue in 2015. We hope to see more speculative development come to fruition, taking the lead from some key sites already in the pipeline such as a new development at Red Scar Business Park, East Preston. The speculative development by Tustin Developments is to provide 13 new single storey business units, half of which are already under offer to a single occupier who plans to move in on completion in early Spring.
The remaining units will range between 750 sq ft and 2,000 sq ft and we expect that the remainder will be quickly taken up. We also hope that other developers will follow suit with similar schemes to plug the gap in the market. The industrial sector continues to improve at the fastest pace and this is where we expect to see the first signs of activity for any new developments.
The city centre office market remains difficult but there are signs that this sector is starting to improve, albeit at a slower pace. We have seen some activity where landlords have refurbished accommodation to a good standard and it is this good quality product that stands the best chance of securing a tenant. However, there is still an over supply of poorer quality office space and we look forward to seeing further investment in the refurbishment and redevelopment of key business quarters such as the historic Winckley Square, Preston.
The investment market has definitely seen evidence of investor confidence returning to the prime sector, Multi-let industrial estates remain sought after generally, as do well located high street retail opportunities, albeit at particularly competitive yields. Appetite for Preston and surrounds has increased as investors look beyond traditional centres such as London, Manchester and Liverpool for better value for money.
Retail is slowly starting to improve within Preston city centre as Turtle Bay Carribean restaurant and Tesco Express move onto the high street. We hope to see more initiatives to bolster the entertainment and leisure offering to help secure some of the bigger, national retail brands for the city which in turn will hopefully stimulate the retail sector.
Further afield, Better Bathrooms conitue with their agressive expansion plans and their UK wide new store roll out. Having opened retail warehouses in Leicester, Slough and York in 2014, a further six are currently under offer for a 2015 opening and the bathrooms retailer has an appetite for many more locations across the UK.
Overall, we hope to see more opportunities emerge across all sectors and locations. We will continue to do what we do best which is offer our clients sound, honest commercial property advice to ensure they get the most out of their property assets.