The South East


In My View Allan Pickering Divisional Director at Goadsby Commercial Comments on Hampshire Commercial Market:


‘The South Coast has remained robust in the course of the last 12 months and as we now enter a period of increased optimism we are confident in a commercial market that will improve and strengthen in the next few years.


We have seen strong levels of demand and take up across most sectors. Retail on the high street has seen rents increasing with increased optimism and activity in more resilient affluent locations, such as Winchester. We have seen


larger high street brands take space such as Wenzels taking over former HSBC bank and Nandos and Five Guys to open in the former Debenhams unit leading to nearly complete occupancy on the High Street. Secondary retail across Hampshire has also performed well with uptake continuing with new and expanding businesses.


We have seen an increase in demand for high quality office space with more consideration being given to energy efficiency credentials to satisfy company’s corporate objectives. Whilst the office market has been difficult, the need for quality, high spec space continues and more options coming to market for Cat A + space providing more plug-n-play options for tenants.


There has been limited quality investment stock as yields have been challenging to scrutinise set against variable interest rates, but continued demand with cash buyers in the market. As we have launched investments recently, we have seen in some cases an


increased consideration for location and potential rental growth, over covenant strength. It is a more challenging market for industrial investments but good demand for leisure and retail in the right locations continues.


Goadsby are unique in our combination of commercial and land departments meaning we are well placed to act on commercial development sites such as care homes and redundant office buildings with potential for redevelopment. In recent months we have seen an increase in former rest homes coming available. We have just launched to market a substantial former care home site of 1.23acres on Park Road in Winchester quoting £2.5m and have been inundated with early enquiries, similar to our sites in Otterbourne and Southampton, where we have seen recent successful disposals.


Goadsby are independent commercial company with office in


Hampshire and Dorset. Specialists on the South coast we pride ourselves on our level of service, and professionalism, to advise clients across all sectors from sales and letting to acquisitions and ongoing portfolio management. If you require confidential advice contact Allan Pickering


For more details please visit www.goadsby.com


Isle of Wight - A Hidden gem


Discussing the current market conditions with Gavin Chambers, director of Gully Howard Commercial Property Agency, operating on the Isle of Wight.


How do you feel about rental conditions, and investment yields?


Rental growth on the Isle of Wight is certainly not the strongest in the country; nor is it guaranteed. That said, return on investment yields are higher than that found on the mainland with most vacant commercial premises (with the exception of industrial stock) selling at a possible gross return of circa 10-11%. With a lot of 1980s & 1990s properties on the island, when considering conversions to residential these have been achieving around 9-10% gross return.


Is there any type of property that seems to be more in demand than others?


Demand for industrial stock from 705-2,000ft² remains very strong post-COVID, and the White-Van-Man type of business flourishing, leading to competition for rental of these sorts of units. When it comes to larger industrial units, there are fewer parties wishing to take them on, though the level of rent has been sustained well.


What is the market for typical retail/shop units? Small retail units in all towns on the island, if sub-£10,000 per annum in rent is strong. Once the units are over £12,000 per annum, there are fewer ‘island’ covenants willing to commit to leases unless the location is price, such as Union Street in Ryde.


Many independent shops are still trading well, arguably better than 38 COMMERCIAL PROPERTY MONTHLY 2024


similar towns on the mainland, in part due to the captive Isle of Wight audience.


Noting the Isle of Wight’s popularity as a holiday destination, how is the Hospitality Market?


Hospitality remains tough, unless businesses being sold (or the premises) are exceptional. That said, the Isle of Wight is beginning to get more and more of a reputation as a gastro destination, with the more traditional coaching-type hotels and establishments beginning to struggle a bit.


Is there a particular movement towards redevelopment/conversion on the Isle of Wight, as seen in other places in the country? When considering development opportunities, the demand for smaller development sites still remains high, but with more and more complications in achieving Planning Permission, more taxes and costs, and stricter Building Regulations there has been a detrimental effect, and the market has slowed down. If priced reasonably/competitively, larger sites are still in demand but again, the stipulations above apply. Some developments have taken years just to get through the planning process which can dishearten investors and developers.


Employment land, albeit not achieving as much per acre, would appear to be in high demand due to the relative short supply of it, which is a trend I envisage continuing.


www.gullyhoward.com


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