Development is back in vogue with a genuine appetite for potential sites despite the current economic and political uncertainty.
We ran an article in our summer magazine on the increasing attraction of rural areas to residential developers with no end in sight to the UK’s housing shortage.
The ongoing under supply is driving activity alongside continued government support for the Help to Buy scheme and HCA funding behind housing associations, who are increasingly looking at open market development as well as social housing.
But homeowners need jobs too. So, even in the uncertain climate, the need for new employment sites will continue.
This demand for employment land has pushed industrial land values up considerably and in some key areas of the country, prices have reached almost &600,000 per acre, rivalling or even exceeding residential land values.
So, where residential development has historically provided higher returns, now things are changing and the development of new industrial buildings is right back on the agenda, presenting great opportunities in commercial property.
The exciting thing from our point of view is that Fisher German is ideally placed to advise developers, landowners and investors from our multi-disciplinary perspective and with a geographic spread that matches well the key areas where development is sought after.
So, we can easily flex to meet changing priorities within central government and local authorities as to acceptable planning uses.
And we can support increasingly popular mixed-use schemes and assist with change of use, for instance from pubs to residential or agricultural to commercial.
Furthermore, with many long-term landowner clients of the firm, we have access to the broadest spread of potential land holdings for development – alongside the most up-to-date database of potential buyers.
In particular, we’re seeing more developer buyers in the market for small to medium sized development sites in key employment zones across the Midlands and up the M1 and M6 corridors.
The sustained genuine interest and unsatisfied demand has grown over the past two years with a recent spate of lettings in the key 20,000-50,000 sq ft bracket in the West Midlands limiting supply further.
Chase Commercial’s 30,000 sq ft Ratio:Park development in Kidderminster is a good example of a smaller scale industrial scheme.
Tills Direct has bought the first 1,600 sq ft unit of 10 on phase one of the new enterprise park specifically for small and medium-sized enterprises. A second phase of 11 units will follow.
Worcester council approved plans for 240,000 sq ft of employment space supporting 500 new jobs at the 20-acre Nunnery Park gateway scheme on the edge of the city.
The St Modwen scheme includes nine trade counters, a Greene King family pub restaurant, a drive-through KFC restaurant and a car showroom.
We’ve also just brought to market a fascinating development opportunity for ‘loft style living’ on both banks of the River Avon in the centre of Tewkesbury.
A mixed residential, retail and leisure development is anticipated, with both new build and the conversion of the former Healings Mill Brewery Building and associated buildings.
It all points to exciting times for commercial as well as residential development. If you own a site or are looking to develop or invest in opportunities, we’d love to help you out, so please get in touch.
