This could be the strong year for business regeneration as demand for commercial property in Coventry and Warwickshire is growing – and could soon outstrip supply.
As confidence in the economy increases so does the number of new business start-ups and expanding companies looking for local property to rent or buy.
Simon Hain, a director of Leamington commercial property consultants ehB Commercial, said there was growth in demand across all commercial sectors – retail, office and industrial.
In recent weeks ehB Commercial has witnessed a mushrooming of larger commercial deals on its books, including a 18,200 sq ft office sold to the Midcounties Co-operative to further expand on Tachbrook Park, and the letting, with deposits paid, on 13 of the 14 new start-up business premises on the new Trident Park development – before any have even been built.
Mr Hain said: “We have seen an organic and sustained growth in interest in commercial premises in the Leamington area, which is always a good sign of economic recovery – but it is too early to pop any champagne bottles yet.
“We could soon see a situation where demand outstrips supply as stocks of such properties are dwindling and there is too little to choose from.
“In recent years it has been a buyers’ market with office values, for example, falling below the actual build costs. Businesses have been offering substantially less than the asking price and negotiating significant reductions on rent.
“This has led to many landlords being reluctant to let or sell as they wait for the market to pick up. Well that time has arrived, or at least we are in the early stages of a recovery. The market is definitely thawing .
“In recent weeks we have successfully let six Leamington town centre shops.”
ehB Commercial has again been named Warwickshire’s ‘Most Active Agent of the Year’ for a record fourth time by leading trade journal Estates Gazette. ehB’s Victoria Mawer is the county’s ‘Deal Maker of the Year’ for the second time.