Flint Bishop

Increasing demand for retail property

Pictured above: Kevin Benson

 

Increasing numbers of enquiries for commercial property have been received for the beginning of 2011 with enquiries extending beyond Nottinghamshire's more traditional property areas.

Fisher German in Retford have received a high level of enquiries from the retail sector requiring over 21,000 sq ft of floor space. Traditionally the area has been influenced by industrial, warehousing and service type occupier enquiries.

This increase has resulted in several offers being received for retail units with the discounts requested from potential occupiers falling. This indicates that rising demand is leading to some stabilisation of the long rent free periods and heavily incentivised rents that have been seen in recent months. 

Whilst landlords are still prepared to offer incentives, this cautious note of optimism will be good news especially as empty property business rates relief will be ending in March this year.

Kevin Benson of Fisher German comments "This does not necessarily constitute a return to normal market conditions but it certainly demonstrates that those retailers who have put off expansion into new towns or looking to start new businesses have started to make themselves known. 

"With relatively high inflation, potential interest rate increases and general austerity measures expected to bite during the course of the year it is easy to understand why commentators are predicting that the market will remain poor for the foreseeable future. 

"A recent survey by Estates Gazette and BNP Paribas showed an overwhelming majority of chartered surveyors questioned about the commercial property market thought that the market was going to get worse before it got better.

"What has been encouraging is the number of new businesses looking to start up, something that was noticeably missing from the majority of 2009 and 2010. Whilst it's clear that the market will remain difficult, these small signs of increased activity will give some hope to beleaguered landlords.  For tenants it's clear that there still ample opportunities to secure commercial property on very favorable terms".

For further information contact Kevin Benson on 01777 719148 or email kevin.benson@fishergerman.co.uk

For more information about Fisher German, please visit their website here: www.fishergerman.co.uk

 

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Article published by Midlands Business News on 23 February, 2011

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