2020 was a year of uncertainty which impacted on business growth, strategy and vision for the future for many but this certainly was not felt or seen in the commercial property market.
2020 commercial market
2020 forced a number of companies to adapt and change their business model and their way of working.
Which area excelled?
One of the areas of accelerated growth has been in the E-commerce market, particularly in retailing. It is no surprise that due to COVID, this area of business is more important than ever as a huge amount of people now rely upon online shopping. This resulted in a significant uplift in demand for warehouse property, where the market was already robust prior to the pandemic.
What were enquiry levels like?
There was no period throughout the whole of last year where we saw a decline in enquiries for industrial or warehouse properties.
What are tenants looking for?
Enquiries were particularly strong for units located in rural areas away from built up urban environments. Potential tenants are drawn to units located on existing farms because they like the accessibility, good parking ratio, range of unit sizes, on-site security, and flexibility, that can usually be offered, allied to location.
What is key?
Unit size is key. The majority of tenants are looking for smaller units up to 3,000 sq ft.
Established urban industrial and warehouse units tend to be larger and, in addition to higher base rents and business rates, they can also attract service charge contributions.
Robinson & Hall commercial lettings
During 2020, Robinson & Hall’s commercial department let a range of industrial and warehouse units across Buckinghamshire, Bedfordshire, Cambridgeshire and Hertfordshire.
In particular, we let two developments of newly converted farm buildings for commercial purposes. These were both in the close vicinity of Milton Keynes and Cambridge and were highly popular, letting very quickly with a good range of enquiries to select from. The units were of a range of sizes up to 3,000 sq ft and the demand outweighed the supply at both locations.
Moving into 2021, we have seen the demand and number of enquiries continue to grow.
Please contact the commercial property team to organise a no obligation, free market appraisal on 01234 351000 or email firstname.lastname@example.org