| the north east
HOW THE EVER CHANGING RETAIL SECTOR HAS PRESENTED MANY OPPORTUNITIES FOR THE NORTH EAST INDUSTRIAL MARKET
says Nick Atkinson, Director at HTA Real Estate I
n recent months we have all witnessed the growing list of high street retail casualties hitting the headlines, apparently signalling that the days of the traditional retail model are numbered.
Whilst our ongoing transition to online retail habits is undoubtedly a major factor in the changing retail landscape, the emergence of Netflix and Spotify perfectly illustrate another important cultural change. In many cases we are gradually moving from being ‘owners’ to ‘subscribers’ and unfortunately this trend will only add to the retail sector’s list of woes. However, like many in the commercial
agency market, at HTA Real Estate we have seen first-hand that where the retail sector has lost, the industrial sector has gained. Requirements for a full range of facilities to serve the online retail sector have emerged in recent years and these requirements are continually developing, as occupiers adapt to advances in new technology and market trends. Delivery models are evolving as parcel delivery becomes an increasingly specialist
function. Many operators are now adopting highly bespoke building models, which can only be fulfilled via design and build contracts, therefore prompting new development activity.
Whilst the challenges of Last Mile
delivery have been widely discussed, for the North East, our comparatively lower levels of road congestion means that it is less of an issue than in larger conurbations. Amazon Prime for example manages to service their customer base across Tyne and Wear from its base at Team Valley, a location which has benefitted greatly from significant investment to the A1 (M) Western Bypass. To the south of Team Valley and off Junction 62 of the A1 (M) is Cathedral Park where HTA Real Estate concluded the letting of 50,345 sq.ft to the parcel delivery specialist, GeoPost. For the food delivery sector, in particular operators such as Deliveroo, location is certainly a more critical factor in order to successfully serve their target markets, but relatively speaking the requirements are far smaller.
IT AND TRAINING INVESTMENT A
leading North East law firm has announced a five-figure investment in technology and training at a time of substantial growth for the firm. Commercial law specialist PG Legal has implemented the Law Society Endorsed Proclaim Practice Management Software solution from Eclipse Legal Systems, the UK’s leading legal software provider.
The case management system will allow the firm to maintain and grow its high quality, professional service while also continuing its expansion in line with a strategic long-term growth plan. Director and head of litigation and dispute resolution at PG Legal, Jonathan Fletcher, said: “We see implementing Proclaim as a vital part of our future strategy to drive the practice forward whilst staying true to our core value of providing an excellent, comfortable and transparent customer experience. We chose this system as the market leader and the stand out choice above other case management offerings. “The implementation of this system ensures that we maintain an accurate and efficient approach to case management while keeping a steady eye on the future of the business. It also ensures we can maintain our best practice approach across the company and to maintain an up to date and high-quality service for our growing client base.”
Alongside the introduction of the new technology, the firm has also invested in further training for each of its team members, supporting the skills growth of its current workforce. Jonathan continued: “We also wanted to invest in training for our workforce, which will not only benefit the business but will also benefit our team of talented individuals by providing up to date and transferable skills.” The Proclaim Practice Management Software will also support
the firm’s upcoming application for Lexcel Accreditation, a quality mark for excellence in legal practice management and client care.
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At HTA Real Estate we concluded the letting of a 53,000 sq.ft industrial unit in North Tyneside to the rapidly expanding online fashion retailer END Clothing and we subsequently sold the investment to Threadneedle. Amazon currently has a live planning application for a multi storey fulfilment centre of circa 1.5 million sq.ft in Darlington and even larger requirements have been reported in the press recently. The North East has a number of excellent locations which are ready to accommodate large scale logistics requirements within close to proximity to the A1, A19 and Ports. As a region we are able to offer bespoke solutions with the benefit of a skilled labour pool and low cost base. Amazon has been very active in recent years, right across the UK and it would be fantastic to see them commit to large scale new development in the North East. But in a market that is evolving on such a regular basis, it is sometimes best not to look too far into the future and predict what may happen next!
RETAIL MARKET BUCKING TREND
e have all seen, heard and read about the travails of the High Street retail market and watched as House of Fraser, Marks and Spencers and Poundworld have announced closures and restructuring as the impact of the internet shopping phenomenon continues unabated. There are a multitude of reasons for these drastic actions, and not the essence of this article, but there is a readjustment required on the High Street in relation to rents and business rates which in turn would encourage a better balance of retailers in the City centres throughout the UK.
W Richard Finney
The lack of individual choice in the City centres, coupled with parking charges and other restrictions such as
congestion charges is however benefitting the suburbs and other secondary shopping areas within these towns and Cities. North East Commercial are active throughout the North East but within Newcastle upon Tyne we are experiencing extremely high levels of enquiries for small retail units in the affluent suburbs of Gosforth, Heaton, Jesmond and Sandyford. The rents are generally in the region of up to £10,000 per annum (circa £200 per week) and the locations are often supported by rates free incentives but nevertheless it is encouraging to see individuals backing themselves and going into business. North East Commercial were recently instructed to market a refurbished parade of 8 shops, vacant and unloved for 5 years prior, which within 9 months has been fully let. Occupiers include a dog groomer, a music school and a skin clinic and it was refreshing to see the parade brought back to life with committed, local entrepreneurs as tenants.
COMMERCIAL PROPERTY MONTHLY 2018
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