The South East In My View by Christopher Thomas Specialist Commercial Property Surveyor


We recently met with Christopher Thomas specialist commercial property surveyor and agent of 40 years standing, of the same named Windsor based Christopher Thomas & Co Ltd practice, and asked his views on current market trends and future for his market as a whole.


We asked Chris where he sees the market flow –


“I read an article recently, Gordon Brown, saying we are in as dangerous an era as the 1962 Cuban Missile Crisis – shortly after this, Sir Keir Starmer started telling us about “the black hole” the previous administration has left us in apparently, the broad shoulders required of those who are stronger (financially) so I had to wonder why Gordon sold our gold, as we stand by witnessing chaotic regional catastrophic European and Middle Eastern war, whilst on the domestic front right wing riots, prison sentences, add a right wing resurgent regional rise in Germany and a 5th November U.S. bi-party General Election – huge consequences either way, balanced in America perhaps by the simple cost of Mike’s groceries in Missouri or Janet’s clothing in California as personal circumstances battle the ballot box, as they always do. Will a criminal be the next President. Then, the other day I heard rumour Mrs Thatcher’s portrait (commissioned by Gordon Brown 2009) is missing from No 10’s “Thatcher Room” So all in all it’s amazing we are still here is it not. Perhaps we need Maggie looking down upon us again with the charming Mr Reagan (plus Mr. Gorbachev beside). Perhaps. Perhaps not.


Are we standing well.


So yes, take a breath, we are all still standing. The regional commercial property market we’re in has proven to be heads down, very busy and commercially resilient. The most active August post the pandemic and by comparison, busier to ones pre.


The office sector has proven fickle post Covid, with businesses tussling the issue of working from home culture versus, in the office productivity. Add to this the progression of AI. So the office environment continues to be challenged with senior management’s reference back to the collaboration, mentoring and team productivity of the pre- Covid era. The answer to this seismic shift – as the majority of businesses seek workforce return for at least 3 days of the traditional 5 day working day week – a flight to quality attractive workspace environments across the board.


The industrial warehouse sector boomed as a result of the Covid lockdowns with online logistics / deliveries driving London demand for warehouse space to new levels – commensurately new levels of rents with some headlining in the £20’s per sq.ft to early £30’s per sq.ft. have proven difficult for our occupier clients not aligned to the core warehouse market. Acting for some of our landlord clients softer rent agreements have been reached, to retain rather than scare longstanding relationships away. For older style good quality space, headline rents in the mid £teens per sq.ft. have been common. There is a sense prime rents are moving down slightly although supply at certain size levels remains limited. The warehouse and logistics market is well advised to plan early with any critical lease dates, particularly those with contracted out terms.


The retail sector benefits greatly from the Government’s retail and hospitality 75% rates relief scheme, also the 2020 Use Classes order relaxation. In addition the working from home trend has fed neighbourhood parade trades (coffee shops, bakeries, food and beverage destination uses). Market demand is strong.


COMMERCIAL PROPERTY MONTHLY 2024


Joe Skinner jskinner@lsh.co.uk


Chris Thomas ct@chthomas.com


31


Warehouse / Industrial Units To Let Boyn Valley Estate Maidenhead SL6 4EJ


4,812 sq.ft to 12,010 sq.ft. Next to The Elizabeth Line Larger Units with Yards Last Availability


The financial markets were predicting an interest rate cut in September when the Bank of England surprised the market slightly with the first cut in August. This is with an undercurrent of caution, as inflation remains on target although stubborn. Nevertheless the winds of change appear overall to be positive. The pound has been boosted by market hopes a Labour government will offer economic stability. As an indication of direction, over the summer, The International Monetary Fund improved its forecast of 0.5% UK Growth to 0.7%


So in conclusion, as a snapshot


I was quoted recently in the RICS July UK Commercial Propery Monitor as saying “The market is exercising caution, unsurprisingly in light of a general election. Activity though remains reasonable – landlords, owner occupiers and tenants appear to be more resilient than previous economic cycles, recognising in particular new and evolving market opportunities” This certainly is the ongoing case. It’s encouraging to see and be a part of helping determined busy people at all levels of business and property, through the challenges they face.


Christopher is an AssocRICS and RICS Registered Expert Witness Surveyor.


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