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| 08.11.07 SMES 'IN MOVE TO LEAVE CITY CENTRES' A lack of modern, open-plan office space across Yorkshire is fuelling the success of Business Homes, according to the developer's managing director.Ian Briggs, Yorkshire Post- Business, reports. IT MIGHT seem a strange claim, but, according to James Houlston, small and medium-sized enterprises are keen to move out of city centre accommodation. Mr Houlston, managing director of Business Homes, says SMEs want premises which can be tailored to their needs and which offer good links to the region's arterial transport links, which city centre locations may not provide. And, says Mr Houlston, you only need to look at the Business Homes model to see his point. Although the company's main market is in Yorkshire, Business Homes is working on 25 schemes in England and Scotland which are either under construction or shortly about to begin on site. Furthermore, Business Homes has completed 21 developments in locations as diverse as Glasgow Airport and a business park in Peterborough, aimed specifically at the SME market. The business, which is managed and owned by the Houlston family and is run from the Thorpe Park business park on the outskirts of Leeds, has taken on new schemes after developing its foundations over the last six years in Yorkshire. The model typically comprises a range of units at one site varying in size from 2,500 sq ft to 6,000 sq ft. Mr Houlston said SMEs were increasingly looking to avoid congested city centres. A shortage of office premises in city centres was also leading to disillusionment. In the present market, with increases in interest rates and the ongoing crisis in global financial markets, businesses were reluctant to buy freehold but were still keen on leasehold deals, he said. One of Business Homes's latest schemes to launch was at St James Business Park in Knaresborough. The 39,000 sq ft site incorporates 10 office buildings from 2,648 sq ft to 6,168 sq ft. Seven of the two-storey buildings have been sold or let. Mr Houlston said: "We have noticed a large increase in the number of businesses who are looking to move out of unsuitable space in Harrogate town centre and into more economical and modern facilities a bit further out of town, with free, onsite parking." The company plans to expand further. "We're looking to build up between seven to eight sites a year in Yorkshire and we've got the funding to do that," he said. Further afield, the aim was to build between 150 and 175 units a year, he said. Business Homes, which has 25 staff and annual sales of more than £100m, has launched four regional offices, each with its own regional managing director. Mr Houlston, who said Business Homes also sometimes sells sites to buy-to-rent investors, went on: "We want sites everywhere but Yorkshire is our key market. "It's where we started and we've got multiple forms of funding now so we are aggressively seeking more opportunities." Nicola Westlake, associate director at Business Homes, said although there was competition to their model from other developers, the company could offer a "one-stop shop" to tenants other firms couldn't match. Mr Houlston added: "The secret of our success is our flexibility in terms of offering people the choice of whether they to buy or rent, and also the fact that we treat our occupiers as customers, offering complementary services to assist their move. "The installation of state- security systems another winner, as it makes customers feel both safe secure at our sites. Other features include air conditioning, as as the latest IT and telecoms cabling solutions." Despite Business Homes's emphasis on offering out-of-town office space, Mr Houlston said the company was planning to launch industrial accommodation as well as l "lodges" for start-up and small ventures. |
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