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Manufacturing Recovery ''Good News'' for Commercial Property

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real estate market  prime real estate  Confederation of British Industry  manufacturing sector  manufacturing industry  David Holt  Industrial Property Demand 

Manufacturing Recovery ''Good News'' for Commercial Property

By - Monday 28 January 2013

The recent recovery of the UK manufacturing industry is good news for the commercial property sector, according to property consultants D&P Holt. The Confederation of British Industry recently revealed that while orders were flat in the three months to January, output remained stable for the second quarter in a row. This bodes well for the real estate market and D&P Holt believe improvements in British output will help drive profits in 2013, after commercial investment fell in 2012.

David Holt, director of D&P Holt, stated: "Demand for commercial property in the manufacturing, automotive and supply chain markets definitely improved throughout 2012 and it is within growing industries like these that the market will continue to grow throughout 2013." However, demand will not necessarily translate into transactions if the commercial sector is unable to support the needs of potential tenants and re-model properties where necessary. Ensuring there is enough prime real estate on the market will ensure a surge of property investment throughout the year.

Nevertheless, 2012 showed glimmers of a commercial resurgence in the manufacturing sector. D&P Holt enjoyed a lucrative year in industrial and office segments, achieving two major industrial deals. These include the five-year lease of Vanguard House on Coventry Business Park to automotive composite manufacturer Multimatic. The company has now taken occupation of the 53,579 square feet "well specified" unit. Global hygiene manufacturer Abena UK also expanded into the Spring Point Building. The unit is six years old, with ten metre high eaves and ten per cent office space.

D&P Holt also enjoyed a boost in office activity due to the growing resurgence of manufacturing. Some 28,050 square feet was leased to Impello PLC, taking a sublease from Telent who had previously occupied the refurbished grade-A 85,000 square feet office. "What we have found is that modern facilities, when made available on the right terms for businesses, will always attract interest and achieve sales or lettings as required and we are not expecting this to change," Mr Holt stated.

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