The South East
We Spoke to Adam Fenney of Owen Isherwood Guildford Who Said
The office market is a strange one at the minute as there is a lot of uncertainty about the future use of office space, especially when speaking
with business owners
during viewings. We have found that a lot of business owners are finding it difficult to commit to taking space, especially on traditional lease terms because they simply do not know how much space they need to accommodate the ever- changing working patterns of their staff. There used to be a time where a business owner would know how many staff they would have in the office on a typical
workday and would be clear on the location or select few locations they needed to be based. Now, employers are questioning everything including considerations such as location, size, specification, parking provisions, sustainability etc. This has meant that ‘cost’ has slipped down the ranking list as employers are realising that if they are to retain employees they cannot settle for cheap, uninspiring working environments.
This ambiguity of how the office environment fits into the culture of a company has led to a lot of indecision in the market. On the larger end of the scale, we have seen a growing trend of stay vs go exercises sometimes undertaken 2-3 years before a decision has to be made, making it difficult for us as agents to manage client expectations when a viewing takes place. However, it is clear that sustainability is back in the forefront of occupier’s minds and the properties that tick the boxes in terms of environment, well-being and amenities are the first to get let. Firms have cut their space requirements considerably and therefore can afford to pay more
The story is more sinister for landlords who may have been struggling over the past few years with low occupancy and high interest rates, especially if they have borrowed against their assets and have mortgages to pay. ‘We have seen millions of pounds wiped off capital values in all sectors but the office market was the hardest to be hit. Worsening yields coupled with long voids formed a two-pronged attack on Landlords and there are no signs of a major reversal in either regard unless they have capital in reserve to upgrade their assets. Upgrade means, replace/ refurbish all M&E in the building, sacrificing lettable floor space to accommodate more common parts amenities and a complete overhaul of the common parts and office space. Not an easy or cheap undertaking.
The office is not dead and buried as a concept and we have seen more and more companies re-consider their working from home policies that were formed because of the pandemic. We have found it incredibly rewarding to be involved with the launch of offices that truly deliver a beautiful working environment and subsequently see that space being filled up with people who benefit from the opportunity to collaborate and build relationships with their colleagues. We expect the Landlords who can fulfil the newly evolved requirements of potential occupiers to be rewarded with increasing rents, lower voids and ultimately an increase in asset value.
For more details please visit
www.owenisherwood.com
Bonsors – The Importance of the Personal Touch
Regional consultancy Bonsors advocates for the personal touch with director Andrew Pollard highlighting it as a major contributor to their success.
The Kingston upon Thames practice dates back more than 150 years to 1872 whilst Andrew has been at the helm since 1989.
He said: “Our extensive knowledge and expertise combined with the personal touch has stood us in good stead over the years.”
Recent successes include the letting of offices to Kingston Grammar School for its sixth form; managing the sale of a development site and the subsequent leasing of new industrial warehouse units; and meeting the property needs of well-known local company Hilton Banks Ltd over several years.
Andrew added: “When a company is commissioned to undertake a task and performs exceptionally well, there is often a domino effect which leads to new relationships and additional business. For us, these ongoing relationships are often reignited years later when a commercial building once again returns to the market.”
Kingston Grammar School When it came to providing new facilities for its sixth form, Kingston Grammar School took a novel approach and moved into 100 London Road, Kingston upon Thames an office building on the market with Bonsors.
Andrew said: “The school took a bold step thinking outside the box in its consideration of buildings which were already available.”
Bonsors history with the building stretches back 40 years when it was developed by local developers Kingston Estates and let to Commercial Union. Subsequent lettings which Bonsors managed included in 2013 to Voluntary Service Overseas.
52 Metroplex Park
After managing the sale of an industrial site ripe for development, new owners Chancerygate, retained Bonsors to market its units, jointly with JLL, at the newly named Metroplex Park
https://metroplexpark.co.uk/ .
The 2.7-acre site at Red Lion Business Park, Red Lion Road, Surbiton, consists of nine industrial or warehouse units from 4,413 sq ft to 18,072 sq ft whilst net zero carbon initiatives and other green credentials such as electric vehicle charging points, photovoltaic panels, high performance insulated cladding and roof materials, and secure cycle parking added to its attractiveness.
Hilton Banks In 2003, Bonsors sold a site at Burhill Road in Hersham, Surrey, on behalf of Hilton Banks Ltd, adhesive and sealant product suppliers, to housebuilder Bewley Homes. Bonsors then secured a new site where Hilton Banks operated at the location for around 20 years.
When Hilton Banks relocated earlier this year, Bonsors soon secured a buyer achieving more than four times the company’s original purchase price.
Andrew said: “We have bought and sold and let premises on behalf of clients spanning several years. Many transactions are several years apart which reflects our professionalism and commitment to meeting our clients’ needs such that businesses seek out our services over and over again despite the time lapse.”
For further details,
contact Bonsors on 0208 546 0022,
property@bonsors.com
www.bonsors.com
COMMERCIAL PROPERTY MONTHLY 2024 please
per square foot for best in class working environments, which has led to record rents being achieved by Landlords who are willing and financially able to spend huge amounts of capex on refurbishing their assets.
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