With the Federation of Small Businesses claiming that two-thirds of small firms are planning to expand within the next 12 months one East Midlands town says its dwindling stock of commercial property has reached “critical” levels.
“As the economy improves, so do the occupier markets, and stock levels in the Wellingborough region are now failing to keep pace with demand,” warns Simon Toseland (pictured), a director with commercial agents Prop-Search.
And things could get even worse, he adds, especially for tenants now accustomed to recession-busting incentives.
“With more employment, no new construction underway and a dwindling supply across all sectors — industrial, office and retail — an upswing in rental values is on the cards. We have already seen values harden with tenants being offered less flexibility in their lease terms and a reduction in the allowance for break-options and inducements.”
Wellingborough — which has 2,500 registered businesses — sees itself as a well-connected, thriving and expanding urban centre that willingly accepts sustainable residential growth. The key to this is home-grown and locally-based education and work skills and a ready supply of jobs across a variety of sectors.
But while there is a dire shortage of turnkey commercial premises there is, stresses the Northampton-based agency, plenty of projects in the pipeline.
Over the next couple of year Prologis is building more than two-million square feet of industrial and distribution units on a new Sywell Road development in Wellingborough. The project is expected to create at least 2,500 new jobs. “However,” cautions Toseland, “Prologis provides large scale distribution buildings and this new scheme is therefore unlikely to satisfy the demand from the local market.”
Wellingborough Borough Council is in negotiations with developers to build new homes, with 50-acres of employment land, on land between the town and Isham. The Wellingborough North scheme will be the second urban extension for Wellingborough where 3,000 dwellings, together with an industrial site, have already been allocated. Construction will be phased over a number of years.
And the authority is also close to sealing its long-awaited Stanton Cross deal that will bring an 837-acre mixed use scheme to the town. To include around 3,100 new homes and 169-acres of commercial space, the project also involves supplying integrated parkland and infrastructure improvements.
The developer, Bovis Homes, has slated work to start on the Stanton Cross site next year if its timetable is accepted by Wellingborough Council, Northamptonshire County Council, Network Rail and East Midlands Trains.
And plans for a new retail and leisure hub on a “gateway” approach to the town centre is awaiting planning consent and could create another 200 new jobs. St Modwen, Britain’s leading regeneration specialist, acquired the 3.4-acre London Road brownfield site last year and has retained Prop-Search to market the development that includes a new discount food store and 8,000sq ft of additional retail space. A drive-through restaurant has also been planned for site.
So, despite the town’s short-term lack of supply, there is space in the pipeline. “With several developments underway and an increasing availability of more land, either allocated or with development consent, the future for Wellingborough now looks very bright indeed,” concludes Toseland.
Previous Post
Sports Direct targets International Expansion following Record Breaking leap in Profits
