SUMMER 2011 ISSUE 4
Hello & welcome During the past 6 months we have continued our structured expansion and have recruited Paul Dean at our Manchester Office and Jody Lauder at our recently opened Preston Office. Both of these appointments form part of our long term structured expansion plan, which involves investing in high quality people to drive our business forward in these challenging times.
Paul Dean Petty Commercial has appointed Chartered Surveyor Paul Dean to join its Manchester based office. The team specialises in all aspects of commercial agency work including disposals and acquisitions. With clients including major corporates, developers and property funds, Paul will oversee a wide portfolio across the region. Paul’s experience has been gleaned with roles at Lambert Smith Hampton, Ask Developments and CB Richard Ellis where he carved himself a solid reputation in the property arena serving clients across the North West. Bringing a wealth of experience to the table, Paul’s varied experience, knowledge of business development coupled with sales and marketing was also a key driver in his appointment. His most recent role involved surveying properties to determine their suitability for the installation of Eco technology. He has excellent knowledge of the local and regional market and will provide expert opinion on the viability of locations prior to acquisition. Paul comments: “I am delighted to be joining the Petty team which has an enviable reputation in all aspects of commercial property. I feel that my skills acquired in previous roles and my knowledge of the regional property market will bring a new dimension to the existing network. Manchester has a vibrant property portfolio and I am looking forward to the challenges that this will bring. “The market is tough without a doubt but our size means we are able to offer a flexible and cost effective service that certainly doesn’t compromise on results.”
We have significantly expanded our team and office network, which will further improve the service we provide to our clients. It is our highly skilled and committed staff and management, which has facilitated this continued growth maintaining and improving standards whilst servicing a growing client base.
Jody Lauder Jody joins the Petty’s team, from Edwin Thompson LLP, with a wealth of knowledge and experience in professional matters and commercial agency. The appointment forms part of the long term structured expansion plan to drive the business forward in what are seen as challenging times. Jody’s remit is to further develop the commercial brand in Lancashire with a clear focus on Preston from the firm’s new offices at Fishergate Court. Jody, who is a qualified member of the Royal Institution of Chartered Surveyors, will be developing the interests of clients, helping them grow, develop and manage their property business interests, handling commercial leases, rent reviews, lease renewals, valuations and Expert Witness work. With over ten years property experience Jody’s time served working with other national practices including Sanderson Weatheralls and GVA Grimley will enable him to call on a substantial depth of commercial market and local area knowledge. Jody added: “I am delighted to be joining such a senior and well respected team in a rapidly growing business. It is an exciting time to be joining such a reputable firm with lots of exciting developments and a renewed confidence in the market.”
NEWS
Hot Topic There has been a buoyant start for the private rented sector in 2011 with growing levels of tenant demand, rising rents and strengthening yields. A recent report by the DCLG published in February shows that the number of households renting privately has risen by one million since 2005 / 2006 from 2.4 million to the current level of 3.4 million. The private rented sector now accounts for approximately 15.6% of all households in England and the Government social housing reforms are likely to add to this. The proportion of landlords reporting growing tenant demand continued to increase during the first Quarter of 2011, with 49% reporting increased demand and 44% stating that demand was stable. The average void period also fell for the third Quarter in a row to 2.8 weeks a year. The availability of mortgage finance declined between the final Quarter of 2010 and the first Quarter of the New Year, although there was a difference between the availability of finance for professional Landlords and small scale Landlords, with the Buy-to-Let market typically favouring Landlords with smaller portfolios. Yields continue to increase and in the fourth Quarter of 2010 reached 6.2%. Professional Landlords still perform better in this sector, with yields around the 6.5% mark. The average gearing for rented property was 41%. Generally, the availability of finance for Landlords to invest in a private rented sector still remains limited and this shortage needs to be addressed in order to facilitate future expansion of the sector.
SOLD ON BEHALF OF GK N-
JULY 2011
Market Overview
And Finally...
In the commercial property market momentum appears to be running out of steam after a sharp rebound in capital values in the sector during the early part of the year.
We do hope you have found our Newsletter informative and will not be offended if we send you the next edition in the Autumn. If you do not want to receive it, please let us know by e-mail.
Much of the improvement, both from an investment and an occupier stance has been in London. The monthly trend in commercial property rents and capital values is essentially flat at the all property level according to the IPD data. The RICS Q1 2011 UK commercial property market survey indicates that at the all property level demand is growing, albeit moderately, but so is availability. Indeed availability has been increasing consistently in recent months, while demand has only recently started to recover having contracted sharply during 2008 and 2009. As a result rental expectations remain negative, although a lot less so than in previous Quarters. Rental expectations have been negative since Q4 2007.
Deals Petty Chartered Surveyors either advised or negotiated the following over the last few months: West Bromwich detached town centre public house recently sold at £200,000. Shropshire small holding with three bedroomed detached house, outbuildings and 12.5 acres of pasture, recently sold at £445,000. Blackpool sea front, 45 bedroom hotel, recently sold at £885,000. Hertfordshire 3,000 square foot modern warehouse unit recently sold at £300,000 Northumbria 9 hole golf course with driving range and club house, recently sold at £450,000. Greater Manchester three surgery dental practice with freehold town centre surgery and NHS contract value of £260,000, recently sold at £430,000. Greater Manchester 38 room student block recently sold at £1.1m, net initial yield 8.5%. Burnley on behalf of landlords Sandybays a letting was agreed in respect of the fourth floor at Stephen House an office extending to 5600 sq.ft at £5.50 per sq.ft. Bolton acting as agent in respect of a 1.5 acre site developers were introduced agreeing an option, subject to obtaining planning consent for residential development.
If you require any property advice, or assistance from Petty Chartered Surveyors, please find below our contact details. Head Office Imperial Chambers, 32 Manchester Rd Burnley BB11 1HH t. 01282 417778 f. 01282 417776 Manchester Piccadilly House, 49 Piccadilly Manchester M1 2AP t. 0161 212 1367 f. 0161 212 1368 London High Bridge, Oxford Road, Uxbridge London UB8 1HR t. 0189 587 6303 f. 0189 587 6300 Liverpool Il Palazzo, No 7 Water Street Liverpool L2 0RD t. 0151 330 3646 f. 01282 417776 Leeds Prospect House, 32 Sovereign Street Leeds LS1 4BJ t. 0113 389 1057 f. 0113 389 1058 Newcastle 116 Quayside, Newcastle NE1 3DY t: 07836 623482 Preston 1 Fishergate Court, Fishergate Preston PR1 8QF t: 07836 623482
Forthcoming Events... Manchester property charity lunch to be held in the Autumn in memory of our much beloved colleague David Thorp, details to be released shortly.
www.pettycommercial.co.uk