Levels of industrial property activity higher in Norfolk
There have been several positive forecasts for the industrial and commercial property sector in the Norwich area. Although there have been a number of challenges facing those in the retail sector in recent times this makes up only one part of the industrial commercial market. Office investment still offers an exciting opportunity for investment.
In fact, demand is outstripping supply in several areas and with predictions for the local economy to grow in the next year by around 1.6, according to the latest Irwin Mitchell Powerhouse predictions. This means the city will outperform London, Manchester and Birmingham. Businesses will be able to expand and the need for commercial and manufacturing space will grow accordingly.
In the city, the supply of both industrial and office space is low, with very few Grade A buildings available and less than 7% vacancy ratings. In one sense, the city has become a victim of its own success. This is, in turn, putting pressure on rents, which makes for very good news for investors in the sector. Capital values are also going up, which is also great news for anyone wanting to invest in the region.
The lack of commercial and industrial space development in the last two decades is being reversed. But these processes take time, so there will be a delay of a few years when construction and planning takes place. In the meantime, investors can look forward to very favourable conditions. The demand is even moving out of the city and along the coast with activity levels in the sector higher than anywhere else in the UK.
Another factor is the cost of developing grade A office space, meaning that few developers are willing to take the risk of building. But with increased demand, the risks are also reduced, so we could see a development boom in the coming months and years. Whatever happens, it’s all good news for investors and the future of the city’s economy.
If you would like to know more about the commercial and industrial property market in the city, then you can always get in touch with our team here at Agile. We are experts in all areas of the market in the city and have been following the development of this trend with a keen eye on investment opportunities. Give us a call if you’d like to have a chat about your options.