Exeter Office Market
Indeed, the South West has benefited in recent years from significant inward investment, and Exeter has attracted its fair share of new and exciting developments.
Although Exeter will undoubtedly feel the effects of the reduction in Public Sector spending, this in turn has led to new opportunities arising for Private Sector businesses to negotiate more favourable terms when acquiring new premises, or re-gearing their current occupational arrangements. The sustained development of good quality accommodation over the past 20 years means that there is now an opportunity for occupiers to secure a range of office specifications to suit their requirements and their budget.
Property owners have adjusted to this more challenging economic climate, and have become more willing to offer prospective tenants leases on flexible terms, with repairing obligations which reflect the age and nature of the accommodation.
There is a broad spectrum of accommodation ranging in size and rental prices, with Grade A space achieving rents of circa £16.00 per sq.ft, mid-range 1990’s offices available at circa £11.00 per square foot, through to practical accommodation at just £7.50 per square foot for space developed during the 1980s. There are currently some excellent opportunities to obtain good quality accommodation with very attractive car parking ratios. Gilbert House at Marsh Barton represents an excellent example (see Haarer Goss’ Website for details).
At the cutting edge, there are currently a number of projects under way, notably a state of the art office building being developed at Exeter Business Park for Atass, a company specialising in statistical data for the betting industry. The building will be completed next summer and the 15,000 sq.ft of surplus accommodation will be available on competitive terms. In town, two major lettings at The Senate in Southernhay Gardens were completed this year for Thompson Reuters and Trowers and Hamlins solicitors, at 14,500 sq.ft and 8,500 sq.ft respectively, where headline rents were quoted at £16.50 per square foot.
Despite the more challenging environment, work has now started on the development of the new Exeter Science Park, with work now commencing on the £1.1 million access road. The major expansion of Exeter University in recent years in partnership with the business sector has led to this long term commitment to the development of a central hub for high-tech industry.
Exeter airport continues to grow its reputation for service and efficiency, and recently narrowly missed out on a British Air Transport Association (BATA) Award. The new Sky Park development is set to proceed offering businesses the opportunity to take advantage of the improved services and communications driven forward by Flybe.
To the south of the city, Matford Phase III is also moving forward, which all points to a continued belief in the long term prosperity of Exeter as the capital of the county.
Exeter Industrial Sector
The city benefits from two main industrial estates located at Marsh Barton and Sowton. Marsh Barton, which is situated approximately one mile to the south of the city centre, is Exeter’s largest trading estate, supporting over 500 diverse businesses including car dealerships, retail and trade showrooms, builders’ merchants, tool and plant hire. Most of the traditional large-scale manufacturing has been replaced with a diverse range of businesses specialising in value-added industries. Marsh Barton offers a diverse range of accommodation to suit most occupiers’ requirements. Currently, there are low cost 1970’s units available from circa £4.00 per square foot, through to modern high bay warehousing at Matford (which forms an extension of Marsh Barton) at £5.50 - £6.50 per square foot.
Marsh Barton is said to have the largest concentration of car dealerships anywhere in Europe. The mixed fortunes of some dealerships has presented some rare opportunities for leasehold and freehold acquisitions of prominent roadside premises. Haarer Goss is currently offering 13 Marsh Barton Road, formerly the Renwicks Peugeot dealership, which consists of 22,482 square feet (2,089.17 sq.m) of accommodation, together with 131 parking and display spaces. The quoting price is £1.5 million, alternatively the premises are available on a new lease at a commencing rent of £135,000 per annum exclusive.
Sowton Industrial Estate, situated adjacent to junctions 29 and 30 of the M5 motorway, has become the city’s most popular distribution, manufacturing and business space location. There is a diverse range of size and quality of accommodation to suit most occupiers’ requirements. The recent economic slowdown has led to a number of units becoming vacant with occupiers restructuring their businesses, and consolidating to reduce overheads. Consequently, there are great opportunities for businesses seeking distribution accommodation to negotiate favourable lease terms at rents ranging from £4.50 per square foot for basic 1970’s accommodation, through to £5.50 - £6.50 per square foot for more modern high bay warehousing. New build opportunities, both freehold and leasehold, are also becoming available close by at Hill Barton Business Park, located some 3 miles to the east of Junction 30.
There are a range of unit sizes currently available at Sowton and also at Exeter Airport Business Park, which is located close by. Currently Haarer Goss are marketing two premises at Heron Units, Sowton. Unit 7 offering 4,640 sq.ft (431.21 sq.m) of accommodation at a rent of £20,864 per annum exclusive, and Units 9 to 11 offering 13,456 sq.ft (1,250 sq.m) at a rent of £55,000 per annum exclusive.
Retail Sector
The retail sector has proven resilient despite the credit squeeze, with few vacant units currently available in the High Street. Land Securities’ Princesshay Development has proven very popular and given the central area a well needed boost, attracting shoppers back to the city.
Retail rents range significantly depending on the location, size and specification of the accommodation. The more challenging economic environment has certainly impacted on the terms which tenants feel able to offer landlords when negotiating new leases, and there is no doubt that retailers who present a reasonable covenant will obtain favourable terms from landlords keen to attract occupiers to their premises. Significant rent free periods and more flexible leases are becoming a common feature.
The retail warehouse sector is bearing up well despite the more difficult trading climate. Notable recent developments include the letting of the former Fabric Warehouse premises at Bishops Court Retail Park, which is located adjacent to Junction 30 of the M5. Haarer Goss negotiated the letting of the vacant retail warehouse unit, which has been substantially re-modelled to accommodate Snow & Rock in 10,000 square feet, and American Golf in 3,800 square feet of accommodation. The construction works are now complete, and the retailers will be opening their doors shortly ready for the Christmas trading period. This new development will compliment the existing Toys R Us 33,000ft flagship store which opened its doors this time last year. For further information and advice please contact Haarer Goss.
For further information on Haarer Goss, one of Exeter's leading independent Chartered Surveyors, see the Haarer Goss website or contact them on: +44 (0)1392 251 171
