Lack of Industrial Space Continues
We have continued to experience a increase in variation of businesses take up space, as our portfolio of industrial tenants further diversifies from the normal logistic and storage occupiers, while a lack of new warehouse space continues.
An example of the mix in businesses recently completing on new space are Alces software, whom have completed on a recently refurbished light industrial unit. The company specialises in I.T. solutions and further cements our increasing take up in software and Internet based business. The demand for small to medium size industrial space continues to strengthen on the back of internet based business sales growth and associated logistic networks continue to expand. The last quarter we welcomed Dudley College as a new tenant. They have occupied a light industrial unit, which will be used as a training facility. A more traditional deal completed is the leasing of 50,000 sq ft to logistic firm TVS. We have been working with them for the last six months to create a facility fit for there needs, the build should be completed mid summer.
It is clear that there is a distinct lack of industrial space for new or growing business in the south east especially Oxfordshire and Buckinghamshire as the counties have seen continued take up and a lack of speculative building. This has seen our vacancy rate reduced to an all time low. A negative impact is the lack of fresh real estate investment opportunities and investors have seen yields and opportunities compressed by the low interest rate environment. Bond yields have been driven lower by a continued urgency to park money some where with limited risk. Today the Italian yield on two year notes drops below 1 percent for the first time, again evidence that it is becoming harder to find low risk returns on decent yielding investments while a continued confidence in the macro environment makes traction.
We are actively seeking new acquisitions, if you have any commercial freehold investment opportunities (vacant or occupied) please send details to firstname.lastname@example.org
(Please see below the images of recently refurbished 4 Murdock Road, Bicester, Oxfordshire which is finished to our usual high standard.)