Black Country

Tough but looking better
2009 has been a tough year for the Black Country commercial property market as with other sectors of the economy. However, more and more positive signs are starting to emerge as the months go by.

WOLVERHAMPTON
Andrew Groves of Towler Shaw Robert's Wolverhampton office comments "I last put pen to paper in Property News Midlands during January and predicted a tough 2009 in the Black Country. Has the year so far been as difficult as predicted?
Yes, but there are some positive signs starting to emerge as the months go by.

The general consensus is that enquiry levels have been down 30 - 40% compared to the top of the market in 2007 and the size and quality has also declined.

As we are all too aware there has been an increased volume of available stock coming to the market across all sectors. The net result has given occupiers the ability to negotiate hard and relocate on very competitive terms. Agents acting for tenants / purchasers on acquisitions have not had this much fun in years!

We have noted some recent improvements. Enquiry numbers have picked up a little and there are definitely more freehold enquiries than we've seen for some time from both occupiers and investors. Various things could be read in to this.

Increased confidence? A view that property values and yields have bottomed out? Improvement in bank lending? Poor interest rates from money sitting in the bank? In reality it's probably a combination of the above.

Much of the property headlines earlier in the year focused on development schemes being delayed, put on hold or scrapped completely. Wolverhampton was included in this with delays in bringing forward the 96 ha I54 employment site and the CPO's being put on hold for the retail led Summer Row development in the city centre due to funding difficulties."

Andrew confirms that recent news has been a little more positive. He sites Peel's planning application for a 100,000 sq ft supermarket on its existing retail park on Stafford Street.

"Peel hope to offer an answer to the city's hold up in supermarket supply which has been delayed due to a battle between Tesco and Sainsbury's on a site in Raglan Street which has been rumbling on for years," writes Andrew.

"Regeneration specialists Urban Splash have also turned their attention to Wolverhampton with the recent purchase of the former Sunbeam factory. The 150,000 sq ft landmark building was let to Chubb who never occupied the multi storey building. A&J Mucklow decided to sell the site when the lease expired in June.

Urban Splash state they have no immediate plans but it is anticipated they will move forward with another mixed use scheme on a smaller version to their Fort Dunlop scheme in Birmingham.

We have recently placed two office buildings on the market in Wolverhampton on behalf of Carillion as part of their ongoing restructuring plans.

Staffordshire House, Salop Street is a 6 storey building fronting the city's Ring Road. The building was fully refurbished by Carillion 18 months ago and space from 4,400 sq ft up to 36,600 sq ft can be made available.

The second building is Pendeford House on the Pendeford Business Park approx 1.5 miles from J2 M54 Motorway. It comprises a fully refurbished building totalling 11,400 sq ft with 66 on site car parking spaces. The property offers very modern open plan accommodation and is available as a whole or on a floor by floor basis on competitive terms."

Back to Midlands Features September 2009

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