The future of Sudbury’s commercial market
Fenn Wright has long been involved in the commercial property market in Sudbury and continues to advise many of the largest employers in the town, including Prolog, Ciba Corning, who following various mergers and acquisitions now trade as Siemens, MEL Aviation, Erben, Lait and a host of other local businesses.
Significant projects for Fenn Wright, include the development, letting and subsequent sale of the Shawlands Retail Park – Sudbury’s only out of town retail park. Fenn Wright managed the sale of the eight-acre site on Church Field Road to Suffolk Primary Care Trust (the same site which now accommodates the Sudbury Community Health Centre) and the sale of the ‘Forward’ Wholesale building, also on Church Field Road.
Fenn Wright has also worked in partnership with market support firm, Prolog, in the acquisition of Sulby House in North Street and the sale of the 24-acre development site at Church Field Road, also purchased by Prolog.
The demand for industrial premises in Sudbury continues to exceed supply – a recent tour of the principal industrial estates, at Northern Road and Woodhall, revealed that there are no empty units available.
Fenn Wright continues to be the commercial ‘go-to’ partner of choice in the Sudbury area and has a register of both freehold and leasehold applicants, actively looking for new premises, who are kept up-to-date on all potential opportunities as they arise.
One of the consequences of demand outstripping supply is an inevitable increase in both rental and capital values.
Good industrial units of up to 2,000 sq. ft. currently command rentals of no less than £5 per sq. ft., with values reducing as lot sizes increase. With construction costs outpacing the increase in rental values the prospects of new units being constructed on a speculative basis is limited. Therefore, in the short to medium term we expect this upward pressure on values to continue and the trend for demand exceeding supply to be maintained.
Retail in Sudbury
The retail market in Sudbury, as with many nearby market towns, has struggled to recover from the recession. The anticipated departure of both Argos and Sports Direct in North Street will certainly impact the towns retail offering.
In recent months, we have acted for landlords renewing leases on premises situated on Market Hill and more positively values are stable with approximately £40 per sq. ft. routinely achieved on the south side and £55 per sq. ft. along the preferred northern pitch.
Reasons to be confident in the commercial property market in 2017:
Bank of England Backtrack
Xtra Mainline Investment
Interest Rates Remain Low
Technology Reducing Costs
Regional Advantage in South East
Uniform Business Rates Going Down
Positive Yield Gap for Investors