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| 30.09.07 HARROGATE REMAINS A VERY POPULAR LOCATION FOR INVESTORS AND PROPERTIES ECHOING the message of various contributorsto this article over the last year or so I am pleased to report that the commercial property market in the District still remains extremely strong. At one level, in terms of the larger value investment transactions, there is inevitably some reaction to the various rises in interest rates. If the Victoria Gardens Shopping Centre were for sale,for example, the potential value which would have been achieved through competitive interest in the market three to six months ago would now be rather more subdued. Having said that, Harrogate remains a very popular location for investors and properties which are self-contained in retail, office or industrial sector between £200,000 and £2,000,000 remain much in demand from owner occupiers or investors. At the end of the day it is not necessarily a case of a market which ends up closely mirroring national trends in economic statistics and indicators, rather one which is simply driven by the lack of supply and a strong demand. In this sense in Harrogate the commercial sector is extremely similar to the residential sector i.e. competition to buy a 5,000 sq ft industrial unit or a period office building in the Town is as strong as it is to buy a decent five bedroom detached house on The Duchy simply because everyone wants this product and very few exist. At Carter Jonas we have seen this situation illustrated with two of our recent office instrutrtions. With Harlow Ctourt we are instructed in the letting or sale of a period building which provides around 5,000 sq ft of office space at the top of Otley Road. We have received very little tenant interest but extremely strong demand in this period office building on a freehold basis. As a result the sale is likely to proceed by way of best bids during October. Similarly at Whitfield Business Park on Manse Lane, where Wbarfedale Developments are developing six 1,300 sq ft and two 2,500 sq ft office buildings adjacent to their own new headquarters, we have strong freehold interest in this scheme which will be completed December 2007. The scheme is ideal for smaller businesses seeking to own their own buildings starting at 1,300 sq ft. The scheme is also timed to complete when, judging by the success of the nearby scheme by Business Homes, there will actually be no other modern office accommodation available in the marketplace. This leaves us with an interesting question as to when and where the next stage of supply will be brought forward by the Council. Any business looking for land around Harrogate and Knaresborough or indeed new buildings around Harrogate and Knaresborough will find 2008 a fairly barren period. The Council Planning Department will need to move swiftly to ensure sites are properly allocated and have been brought forward as quickly as possible as part of the new plan process otherwise by 2009/2010 those businesses looking for office and industrial accommodation will find themselves in a critical position if they wish to stay in the district. |
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