Sitting next to Blackpool Retail Park and to the south of the town centre, off Squires Gate Lane, the property is a warehouse with offices. Alliance plans to spend £250,000 on its refurbishment.
Ian Hunter, director at Property Alliance Group, says: “Forming part of the Blackpool Airport Enterprise Zone and around two miles from the M55, the unit is situated in a thriving area. We’re confident that its location coupled with the quality of our refurbishment will result in a swift letting.
“This is our first acquisition in Blackpool and with the Enterprise Zone rapidly developing, we’re seeking opportunities for further investments in the year ahead.”
Old Mill Industrial Estate
However, he says: “There is not a huge amount for them to look at. The main problem generally is a lack of vacant opportunities. We just need more stock.”
Caroline James
Growth across the industrial sector continues to intensify with availability of units failing to keep up with demand – a national trend mirrored in Lancashire.
Industry watchers say the wider North West market is characterised by a significant supply deficit and strong occupier demand, which has resulted in growing rents.
B8 Real Estate reported that 2021 saw 106 investment deals in the region with a total value of £1.3bn, an increase of 86 per cent on 2020, while letting activity rose by 16 per cent and prime rents by 7.4 per cent.
Danny Pinkus, partner at property consultants Robert Pinkus and Company, based in Preston, says investors are looking at places like Lancashire because prime markets such as Manchester and Liverpool have become “quite heated”. They are also looking to create more value.
Danny adds: “The demand from developers and owner occupiers for employment land in Lancashire is still very strong but the sites aren’t coming forward very quickly.
“If we are not careful the money will get spent elsewhere. The speed at which land is coming forward is a major issue, it is just taking too long.
“The cost of construction also continues to rise, making it difficult for developers to firm up on pricing. Delays cause real problems.
“Another problem is that a number of good employment sites have gone for housing, which appears to have been more of a priority for some local authorities, to the detriment of business.”
Caroline James, managing director at Blackburn based commercial property consultants Trevor Dawson, says there is increasing interest in Lancashire from overseas investors.
She adds: “The perception of the M65 corridor is improving, especially since Frontier Park established itself as a logistics destination.”
The £100m business park on the Hyndburn/ Blackburn border, near junction six of the M65,
has been a major success story.
Caroline says the arrival of the National Cyber Force headquarters at Samlesbury, near to the new Advanced Manufacturing Research Centre and BAE Systems’ military aircraft plant, will also bring spin offs.
However, she echoes the warnings over the lack of sites, and adds: “We have to provide the opportunities, we will lose out to other areas if we don’t.”
Some projects are moving forward. Planning approval has just been given for a 55,570 sq ft multi-let industrial scheme at the Old Mill Industrial Estate in Bamber Bridge.
Industrials REIT will transform its existing estate by redeveloping an old industrial building and utilising some vacant land to create 44 new light industrial units.
Once operational, the scheme is expected to provide a £3.8m annual boost to the Bamber Bridge area.
Paul Batho, senior development manager at Industrials REIT, says: “The highly sustainable design provides for flexible unit sizes and responds to the unprecedented demand we are seeing for new space on this sought after, well- connected estate.”
SHOWING EASTERN PROMISE
Almost one million square feet of prime commercial property in Burnley and Pendle is either in the planning process or has outline consent.
Michael Cavannagh, director at property consultants Trevor Dawson, says that pipeline is an indication of growing demand for property in the east of the county.
He says: “You only have to look at what is happening in Burnley and Pendle to see how strong the market is.”
The schemes making up the magic million include developments at Burnley Bridge South, Titanium Park, Advance Point in Burnley, Lomeshaye Industrial Estate, Spring Gardens in Colne and Riverside Business Park in Barrowford.
Titanium Park, which is the final phase of Burnley Bridge Business Park, was sold to Monte Blackburn, the property subsidiary of Blackburn’s billionaire Issa Brothers and the developer of Frontier Park, last year.
The nine-acre site is now being brought forward as a speculative industrial scheme with units available from 14,000 sq ft.
Michael says: “The development at Titanium Park will complete the final phase at Burnley Bridge. It is great to see ongoing developer confidence in the area for speculative development.”
Burnley Bridge South is a proposed £50m project being led by Eshton, the Yorkshire-based firm behind the initial 60-acre Burnley Bridge development.
The green light for the Lomeshaye Industrial Estate expansion was given in March 2019. Lomeshaye is already one of the county’s largest employment sites.
Looking at the general picture in the commercial sector, Michael says that there is “frustration” over the time it takes for proposed developments to make their way through the planning process.
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