Any agent will tell you that industrial property values are rising due to steady demand but crucially a shortage of supply. This is seeing an improvement in all sectors of the market including older, secondary space which remains highly functional.
Osyth Close in Brackmills clearly demonstrates this. The investment comprising a terrace of 6 warehouse units each of 4,950 sq ft was acquired by London based investor Keranto in early 2016 with one vacant unit and the last letting having been at only £3.10 psf.
On behalf of the new owners Drake Commercial have undertaken a programme of active management including refurbishment of the vacant space; lease renewal negotiations; lettings and sales. As a result all of the units have been let and sold to investors or sold to owner occupiers.
The rental level achieved on the site has more than doubled to £6.50 psf and capital values to have reached in excess of £90 psf.
Joe Smith of Drake Commercial commented “we are very pleased with the way this investment has performed and so is our client. It has exceeded expectations in part because the pace of activity in the market has accelerated during the marketing period. Demand for industrial and warehouse space continues undiminished and underlines investors and occupiers thirst for well located, good quality industrial units”.