A Focus on Efficiencies
A concern for property investors can be retaining tenants when the market is seeing less demand from occupiers. A focus on tenant retention rates and pre lets has aided in reducing our group vacancy rates to a three year low, whilst still acquiring assets and developing new space. Our focus has been on broadening the portfolio to a varied mix of industrial/distribution space to allow and accommodate current tenant growth and expansion. This alone has aided in a tenant retention rate for 2011 of 91%. We have also focused on recycling non core assets and using the capital to strengthen on our current prime geographical asset bases.
We have seen continued demand for prime industrial space and the lack of building now taking effect and some may say that supply and demand is now balancing out on prime assets.
The pipeline for development and refurbishment projects stands at over 290,000 sq ft at present, this will release enough ERV to increase total rental income to a company high when occupied. By coupling a focus on tenant retention and having the flexibility to offer built to spec sites we are in a position to take advantage of businesses looking for space.
We will work to maintain portfolio efficiencies and momentum on existing projects to offer occupiers a class leading service on industrial space.