Petty Commercial Newsletter - Spring 2012

NEWS SPRING 2012

AN AWARD WINNING YEAR!

PRESTON’S RAPID TRANSIT IN DAVID’S MEMORY

Welcome ello and welcome to our Spring 2012 newsletter.

Against a backdrop of increasing economic uncertainty and continued constraints on bank funding market activity has been relatively low with a drop in enquiries in the final part of 2011 likely to translate to a lower level of activity in the early part of 2012. Capital value

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expectations have also eased with a more negative view of the prospects being taken in most commercial property sectors. However some sectors have witnessed continued expansion including convenience foods, healthcare and agriculture. In addition stunning bargains are available with high quality stock on the market at affordable prices for purchasers with funds in place.

In David’s Memory

Our lunch in memory of our beloved colleague and friend Dave Thorp raised £1,000 for childrens health charity,Sparks.Here is the presentation of the cheque with Dave's widow Kos,to Nia Williams of Sparks.A heartfelt thanks to everyone who supported us.

n one of our most emotional fund-raising events to date, the team from Petty were joined by over 50 business associates and colleagues at a memorial luncheon for our much loved colleague, David Thorp who tragically lost his life in a walking accident earlier last year.

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David, just 43 years old led the firm’s business operation in Manchester and the lunch was arranged with his wife Kos in his memory and also to raise as much money as possible for one of David’s favourite charities, Sparks which provides much needed medical research into children’s health and medical conditions.

Marshall House Our Preston office, have recently secured the prominent office agency instruction for Marshall House. Being city centre based, the building is owned and managed by Hurstwood Holdings who acquired the building in view of it’s strategic locality and future opportunities to provide commercial accommodation at the heart of Preston.

The building has been recently refurbished to form open plan offices and has it’s own dedicated onsite parking for occupiers and visitors alike. The space benefits from fantastic proximity to retail, banking, leisure, and health amenities as well as the outer peripheries of the city.

Such opportunities are rarely available within the CBD. Marshall House extends to 9 individually floors which may be sub divided to form compartmentalised offices, meeting rooms and break out space, over a floor plate of 3,000 sqft or multiple floor plates as required.

Attractive leasehold terms are available to negotiate, and introductory opportunities can be discussed through our Preston office or Lancashire Agency Team.

Preston will be celebrating the Preston City Guild for 2012 and as such will celebrate current, historical and future trading capacity in the city, fundamentally underwritten by a retailing catchment of circa 425,000 people, 4 exceptional transport links via the M55, M61, M6 and M65 motorways which are all within a 10mins radius.

The West Coast Mainline between Glasgow, Edinburgh, and London (through Birmingham) has a maximum journey time of 2hrs 50mins and Manchester and Liverpool approximately 50mins thereto. There are also 3 International and Domestic airports via Blackpool International, Liverpool John Lennon and Manchester.

The lunch at the Mark Addy in Manchester, was followed by an auction of merchandise including a framed and signed Sir Bobby Charlton photograph, a signed Manchester United Pennant, a weekend break and David’s very own Kawasaki motorbike and in total, the event raised over £1000.

Speaking at the lunch, Phil Kelly from Petty’s said: “This event was very much all about David, down to the venue, food choices and his much loved Manchester United!

We were thrilled to have his wife Kos with us and the many people that turned up to show their support. David was a true asset to Petty’s but most importantly a great friend and he is certainly missed by everyone who knew him whether that was on a personal note or as business colleague.”

FOR SALE/MAY LET

TO LET / MAY SELL

TO LET

WAREHOUSE/MANUFACTURING PREMISES

RECENTLY CONSTRUCTED OFFICES

CITY CENTRE OFFICES

Enterprise House, Billington Rd, Burnley BB11 5UB

Barnfield House, Accrington Rd, Blackburn BB1 3NY

• 3,437 sq.m • Detached property • Production facility and warehouse.

• Secure plot with 3 roller shutter door access • Adjoining car park

• Quality finish, with security door access, reception & lift • Dedicated car park • Substantial rental incentives available • Various office sizes

61 Moseley Street Manchester M2 3HZ • Located in the heart of Manchester’s professional district • Secure basement car parking • Recently refurbished • Rents from only £9.95 per sq.ft

An Award Preston Rapid Transit Winning Year for Petty’s t Petty’s we consider our levels of customer service, local knowledge and staff expertise as being the pivotal elements that keep us at the top of our game yet again, we are thrilled that this has been recognised as 2011 proved to be full of success when it comes to industry accolades.

As proud Home Sale Network members, the year kicked off to a fine start, when the national Home Moving Trends Survey announced that Home Sale Network Agents are consistently exceeding the expectations of their clients. The survey revealed that 84% of customers who have engaged with an estate agent would recommend them to a friend. However, Home Sale Network Agents collectively received a score of 87% positioning them confidently above the average.

Later in the year, Petty’s was shortlisted as one of the top 10 Lettings Agent in the North West Region at the coveted Estate and Letting Agent Awards known in the industry as the ESTAs. These awards are based solely on customer satisfaction rather than a judging panel, so it was fantastic news to know that our high standards of customer service are recognised by our clients. Petty’s were also shortlisted for not one but two Red Rose Awards, featuring in the highly-competitive Property Business of the Year and Commitment to Skills categories.

The icing on the cake came as we were awarded the prestigious title of ‘Best

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etty’s Preston agency team have been appointed to act for Trampower assisting them to deliver a rapid transit light rail passenger tram over four essential lines, first comprising Fishergate through to Preston East Employment Area around Bluebell Way. The lines requirement and inception has taken several key steps forward with planning consent now granted for the ‘Guild Line’ and several other new regeneration and mixed use development schemes. These development strategies adopt the tram as part of their green transport plan. Indeed the line’s performance will be boosted by the announcement in the LEP that John Lewis will now secure premises at Deepdale Retail Park and Centros will endeavour to develop out former James Hall Spar site to Ribbleton.

Further details are available at www.prestontrampower.co.uk

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Agent in the North West Region’ at the Home Sale Network Awards 2011!

A nomination for the award was a fantastic testament in itself to the hard work and combined effort of our team, but to take the award was the ultimate accolade!

Furthermore, our newly appointed head of our Preston office, Jody Lauder scooped the coveted title of Property Professional of the Year at the Lancashire Business Awards run by lobbying group. Downtown Lancashire in Business. In a confident move, this expansion further consolidates Petty’s high ambitions for growth and diversification into other economically active areas. The new office will give the firm greater access to those previously untapped agency and professional markets of Lancaster, Blackpool and the Fylde as well as local towns such as Leyland and Chorley.

These are all very proud achievements for the team at Petty Residential, Petty Lettings and Petty Commercial and we look forward to seeing what 2012 brings for the team!

Business Rates for Empty Buildings rom April 2011, the empty property Business Rates threshold reverted to rateable value £2,600 from the previous level of £18,000. This is of great concern for SME’S and commercial property owners who have empty premises in their portfolio.

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This will result in businesses with empty properties facing the prospect of having to pay thousands of pounds extra in business rates from April 2011. The Federation of Small Businesses has warned that this will place a very significant burden on companies struggling in the current economic climate.

After a short holiday of six months, when no rates are paid on empty industrial buildings and three months for offices, owners or former occupiers are liable for full rates payment, irrespective of their efforts to lease the buildings. Business Rates are basically a tax, similar to Council Tax on residential property.

In opposition, both the Conservative and Liberal Parties were opposed to this tax, but since coming into power they have yet to do anything about it, except for a marginal increase in the threshold of those small properties which are exempt from paying Business Rates. This may in some part be due to the higher than anticipated revenue raised by the initiative and the Governments’ requirement for income to finance public expenditure.

Empty rates on commercial buildings are effectively a tax on the landlords’ or owners’ failure to attract an occupier. In the current climate the continuing lack of finance and a shortage of business tenants have stalled speculative development, with many developers

being further discouraged by the potential burden of empty rates payments whilst the property is being marketed to let.

There are many foreseen adverse results of empty rates:

buildings when no income is generated this in turn will reduce the amount of money paid to pension pots, when many funds are already depleted due to the downturn.

Firstly, taxation should generally be levied on profit or income, but in the case of empty rates it is being levied on failure, making a bad situation even worse.

Building owners never intentionally leave a building empty, regardless of whether the owner is a large institutional landlord or a small business. If a property does not generate rent, then there is no income from which the owner can pay his tax.

Fourthly, empty rates are acting as a deterrent to investment in building projects at a time when there is a general shortage of good quality new commercial stock. This will certainly adversely impact on the future competitiveness of the North West as a region.

It is also important to appreciate that many buildings remain empty due to companies restructuring to reduce costs in order to survive this downturn and empty rates penalise this strategy.

If a tenant is paying Business Rates as well as rent on a surplus vacant building, it represents a substantial drain on their business.

Secondly, in the current economic climate buildings remain empty due to the fact that there is a surplus of commercial properties and limited demand, regardless of price.

The argument that by increasing the financial penalties of holding empty buildings, will encourage greater competitiveness in the market is therefore mistaken. Companies which hold leases on vacant surplus buildings are tied into a rental commitment by their lease which generally cannot be avoided.

Thirdly, institutional investors often include pension funds which now face additional costs of holding empty

Whilst the Government is under pressure to raise tax revenues from all sources, empty business rates penalise investment and development therfore substantially reducing the ability of SME’S to not only survive these difficult times, but also to plan further expansion. The Government has the opportunity to put measures in place to aid the recovery by the abolition of this penal tax.

Blackpool’s secure etty’s professional team have helped True Bearing Chartered Financial Planners of Euxton secure client offices extending to 3,000 sqft at Blackpool’s Whitehill’s Business Park for the purposes of providing a SIPP to the Directors of their client’s business and facilitate strategic business expansion for the client operation.

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FOR SALE

TO LET

FOR SALE

TRADE RETAIL OPPORTUNITY

NEW BUILD HIGH SPEC OFFICES

INVESTMENT PROPERTY

345 Moorside Road, Swinton, Manchester M27 9HH

Northgate Rd, White Lund Lancaster LA1 5JR

• Suitable for trade counter use • Superb yard with loading door • Visible main road frontage • Well established trade retail location

• Good commercial trading location • Rare opportunity • Flexible letting terms • Plentiful on-site parking • Opportunity for bespoke fit out • Good retail and service amenity

74-76 Burnley Road, Padiham BB12 8QN • 15 year full repairing and insuring lease from the 27th November 2008, subject to five yearly rent reviews • Main road location with ample car parking close by

“Our 8 offices have a combined experience of over 150 years in the property market!”

Deals The following provide a small segment of transactions Petty Commercial have been involved in and further highlight the diversity of market sector covered.

ER WINN y

Lancaster Village convenience store of 1,350 sq ft Recent sale at £285,000 (including goodwill).

rt Propeional s Profese Year! of thCASHIRE

Rossendale, Lancashire Modern kitchen showroom of 2,884 sq ft Sale agreed at £160,000.

LAN INESS BU S R D S AWA

North Manchester Storage and distribution complex of 200,000 sq ft Sale agreed at £2,750,000.

North Manchester Cash & Carry warehouse of 6,000 sq ft plus 4,000 sq ft mezzanine Recent sale at £375,000.

NEWCASTLE

Ardwick, Manchester Industrial unit of 7,000 sq ft Recent sale at £340,000.

PRESTON

Bolton Neighbourhood convenience store with three bedroom living accommodation Recent sale at £200,000.

BURNLEY

West Drayton, London A high street public house with 8 letting bedrooms Sale agreed at £450,000.

LEEDS

MANCHESTER LIVERPOOL

Essex Seaside resort 30 bedroom hotel Sold November 2011 £930,000 Further transactional evidence is available from our national team.

BIRMINGHAM

LONDON

www.pettycommercial.co.uk