Coastal commercial property defying national trends

Last month I was fortunate to be invited to a Sites & Premises meeting, hosted by West Sussex Economic Partnership, at the new Yeoman Gate development at Durrington. It was notable for a number of reasons including the fact that most of the (office) units have now been sold, proving that there is demand for quality office space in CWS, and because the message was one of positivity for commercial property in Coastal West Sussex.

The event was organised by Kylee Charles who manages the Commercial Property Database for WSEP, and the following press release was issued:

Coastal commercial property defying national trends: but businesses warned empty property rates up in April.

Return on investment in commercial property was higher in Coastal West Sussex than in most other parts of the UK, business leaders and commercial property agents were told at a seminar organised by the West Sussex Economic Partnership last week.  They were also warned that the days of zero rates on business properties would end in April.  

The commercial property market on the West Sussex Coast was defying national trends with demand especially for freehold premises still strong.  New developments were coming on stream and despite the pressures, banks were still prepared to lend up to 75 per cent of the value of a commercial property at 1.4 per cent over base rate.  Businesses on the coast were prepared to pay up to £2.00 per sq foot premium for good modern facilities.

Rod Thomas of Vail Williams told delegates about the changes coming in April to rating on empty properties.  Previously exempt, empty warehouses would attract a 100 per cent rate after six months from April while offices would be charged at 100 per cent after three rather than the current six months.  He also said that a new Rating List would be prepared for 2010 based on 2008 rents. 

WSEP Chief Executive Alistair Smith says: "Although it would be wrong to try to forecast what will happen to commercial property on the Coast against the current volatile financial markets, the fact that demand and investment have been strong underlines the potential of the economy."

"There is a lot going for the coast - it offers an excellent quality of life, economic opportunity and will have an increasing population as housing targets are met.  The need to limit outbound commuting by these new households will mean creating business growth and more jobs; a modern commercial property stock is a part of that opportunity," he added.

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