The South East


Positive Demand throughout the South East Reports Jon Skerry an Investment Director at the specialist commercial property auction house, Acuitus


The commercial property market is experiencing positive demand from a


variety of buyers, ranging from


those interested in long-term income producing assets, to those seeking vacant possession opportunities. This diversity in buyer profiles is driving activity across a number of different sectors, especially where we are seeing a migration of previous residential landlords into the commercial market. More on this later.


Debt facilities are gradually re-entering the market, with strong interest


in development opportunities. Although a recent


interest rate cut has improved overall market sentiment, it has not significantly affected the cost of debt, which remains a key consideration for buyers and developers at this time.


The ongoing trend of remote work has caused a reduction in the demand for office spaces, with those assets outside of prime quality struggling to find tenants. As a result, purchasers interested


in Permitted Development Rights (PDR) continue


to be active in acquiring these office properties, and seeking to repurpose them for residential or alternative uses. At the same time, smaller industrial units continue to be highly sought after, both by investors looking for steady returns and by occupiers in need of functional space.


Traditionally, the South East has been the most affluent area of the commercial property market, with the draw of London and higher land costs pushing up valuations. In H1 of this year, assets in the capital made up 40% of total lots sold across the commercial property sector. While we do not expect this trend to continue through to the end of the year, it is likely that sold London assets in 2024 will be above the long term average.


One of the biggest developing trends can be found in the London residential market, where some 30% of current stock on the market was previously rented. This is a result over the uncertainty and potentially unattractive investor market pending the potential new rules on property ownership, increases to capital-gains tax and reduction in profit margins. This, however, is a potential boon for the commercial property auction market with residential landlords being drawn by the attractive yields found in the commercial sector.


Auction markets have remained stable through the year, with consistent success rates. However, the amounts raised at each auction are increasing, suggesting a growing appetite for property purchases through this avenue. Our two remaining auctions scheduled for this year are particularly anticipated, especially as they will take place after the Budget. The outcome of the major fiscal event of the year could have significant implications for private investors, and it will be interesting to observe how it influences market dynamics.


Borough of Broxbourne Blooms with New Developments…


Recently the Borough of Broxbourne has been the stage to many exciting projects which are on the horizon, including Hollywood’s


Sunset Studios Borough’s which is


expected to create 4,800 when completed, and Google’s $1 billion dollar Datacentre development. The Council-owned


second Enterprise Centre was


recently completed and since opening has proved a great success with resident businesses like Vow Nutrition, Team GB’s first ever nutrition supplier and sponsor.


The Council has been busy working on many more game-changing projects which will make Broxbourne an even more enviable place to live in, work and visit…


Waltham Cross town centre regeneration…


The Council successfully bid for Government funding to help towards major improvements in and around Waltham Cross.


As part of a wider regeneration programme, the improvements to the area aim to restore a sense of pride in the community while addressing


economic needs.


The improvements to the town centre, will significantly enhance its attractiveness and


COMMERCIAL PROPERTY MONTHLY 2024


accessibility, and are expected to encourage more visitors, generate new employment opportunities, promote private sector investment, and contribute to the reduction of crime and anti-social behaviour.


Local businesses will be able to enjoy a more vibrant and inviting environment, while residents will be able to have better quality of life, with access to more health and leisure opportunities.


The wider Renaissance programme for the Waltham Cross area has also brought about the completion of a Community Skills Hub (to support local businesses, careers and key skills), a brand new Skatepark with state-of- the-art equipment, and the installation of a 200 square metres green wall featuring 6,500 plants which have not only made the area look more inviting but will also contribute to the extraction of 460kg of CO2 per year, and production of 340kg of oxygen.


In social, environmental, and addition to the recently refurbished


Grundy Park in Cheshunt, which has been redeveloped into an Edwardian style green space, other projects in the pipeline for the Borough include improvements to refresh the look of Hoddesdon town centre, as well as Brookfield Riverside and Garden Village comprising a major shopping and leisure centre, and residential site.


Tungsten Properties Appoints Development Director


Tungsten Properties, one of the UK’s leading industrial and warehouse developers, has appointed Matt Jones as development director as it continues its UK growth strategy.


Matt has more than 12 years’ logistics real estate experience and has joined from Trammell Crow Company where he was development director – UK logistics. Prior to that he worked for JLL and CBRE. He started his surveying career at Lambert Smith Hampton.


Jeff Penman, managing director, Tungsten Properties said: “We warmly welcome Matt to our team. He brings with him solid agency and developer-side UK logistics experience in both land acquisition and speculative development delivery. Tungsten remains well-placed to continue its growth into an improving marketplace in both the mid and big-box sector, with signs of returning occupier and investor confidence. With 2.8 million sq ft in our existing committed development pipeline, spanning from Birkenhead to Colchester, Matt’s track record in delivering across the UK will allow us to deliver and further grow this pipeline.”


Matt Jones, development director, Tungsten


Properties added: “I’m proud to be joining such a brilliant and well-respected company as Tungsten Properties. They are a great team with a wide range of market-leading projects to which I’m looking forward to bringing my skill set.”


Matt’s appointment has brought Tungsten Properties’ team to 10 people.


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