The buoyant economy is continuing to fuel the demand for commercial space, claims a new Royal Institution of Chartered Surveyors (RICS) report, with the retail sector powering ahead in the final months of 2014.
The latest RICS figures show that the availability of suitable space — whether its industrial, office or retail — is at its lowest levels for over a decade. “As a result,” warns Samantha Jones, an associate director at commercial agents Prop-Search, “rents have started to harden across the board with less generous incentives being offered to new tenants.”
In Northamptonshire, for example, all-sector availability has fallen for the sixth consecutive quarter adding to fears that a general lack of stock could start to hamper occupier demand through the coming months.
“We are now at a stage across most of the county where both occupier and investment activity is becoming frustrated or constricted by a lack of supply,” Jones added. “We are, however, seeing healthy enquiry levels from both investors and occupiers and are still seeing more properties coming to the market to meet these needs.”
Among her company’s successes were the letting of three major high street sites in Rushden.
One significant deal was the letting of the final retail space in the former Wills department store where a mother and daughter partnership has opened a shop selling Liberty Flights, the multi-flavoured electronic cigarettes and e-liquids.
The former BTG Travel Agency premises, between Store Twenty One and Superdrug, has also been let — following a successful planning application — to BG Bet.
And a 915 sq ft retail unit at 82 High Street, next to Labrokes, has been let as a new luggage and leather goods store.
Looking ahead to the remainder of 2015, Jones forecasts domestic economic conditions will remain relatively favourable, with the year producing more solid growth which, she warns, “will see further increases in rents of around three per cent for prime stock”.
Story: Cliff Goodwin
Photo: Prop-Search