Roche Retail advise private clients in the purchase of 28 London Street ........
Norwich - 28 London Street, NR2 1LD
Roche Retail have advised private clients in connection with the purchase of the freehold investment of 28 London Street in Norwich where the principal tenant is White Stuff that are paying a rent of £105,000 per annum exclusive.
The property is situated at the junction of London Street and Castle Street and represents a 100% prime position for this increasingly popular location for fashion retailers where Jigsaw, Cath Kidston, Crew Clothing, Gap, Joules, Dr Martens and Moda in Pelle are all represented.
Adrian Fennell, the Partner responsible for the retail department commented that 'our client was delighted to secure this prime retail investment where there is strong rental growth anticipated in a city centre that has been ranked as the 2nd Hottest Retail Location in the UK (CACI 2015).
Roche Retail complete three new shop lettings on Bank Street to estate agents ......
Norwich - 11/17 Bank Plain, NR2 4SF - A trio of new lettings
Roche Retail have recently completed three new shop lettings on Bank Street to estate agents, Century 21 and BMA Estates, along with financial services firm Charles Derby Group.
The three shops are all arranged over ground floor only and range in size between 718 sq ft and 981 sq ft, totalling 2,666 sq ft. All the occupiers took new 5 year leases.
Lloyd Perry of Roche Retail commented that "This is encouraging news for Norwich's residential market, demonstrating its buoyancy and establishes a concentration of residential estate agents and related services within close proximity to each other."
Roche have strong interest in the remaining unit at 15 Bank Plain that comprises 967 sq ft.
Roche Retail has let 40A Westgate Street, Ipswich to 'The Stylers' .......
Ipswich, 40A Westgate Street, IP1 3ED
Roche Retail has let 40A Westgate Street, Ipswich to 'The Stylers', a unisex hairdresser with 11 salons in the UK and which has the expectation of expanding.
The shop comprises a total floor area of 2,106 sq ft arranged over 3 levels. The Stylers took a new 10 year lease at an initial rental of £15,000 pax.
Lloyd Perry of Roche Retail commented that "This a positive retail let for Ipswich as it is another addition to the top end of Westgate Street, which is one of Ipswich's primary retail thoroughfares and which has recently seen the enlarged Primark open."
Hints and tips in the run-up to the revaluation ......
A quick history lesson! Since 1990, Business Rates Revaluations have taken place at regular intervals, which, up until the most recent revaluation, were carried out every 5 years. The current revaluation date is set for the 1 April 2017, but keeping to sensible tradition, there has always been a preceding valuation date, usually 2 years before, called the Antecedent Valuation Date (AVD). Therefore, the prima facie evidence for the 2017 rating list will be market rents set as at 1 April 2015, nearly a year ago. The valuation is tempered by any relevant circumstances at the actual valuation date itself of 1.4.17, such as the physical layout and use, etc.
So in advance of this revaluation, the first consequence of it is, that ratepayers are likely to see an increase in requests for information from the Valuation Office Agency (VOA) in the "forms of return". These forms have to be completed by law and ask questions which are relevant such as the rent payable, the date the rent was set, and why it was set, detailed lease information etc. It is worth reiterating these forms must be completed by either the ratepayer or their agent.
The second consequence for ratepayers is that forecasting your actual rates payable beyond the revaluation date of 1 April 2017 is going to be very difficult. This is for the following main reasons:
- Business Rates Payable normally increase annually in line with the RPI index.
However, with a revaluation, the rateable value is likely to change and the new level of Uniform Business Rate (UBR) is to be set. The UBR is the multiplier to be applied to the rateable value.
- Transitional adjustments, which are the phasing in of new rateable values, may or may not be put in place.
The final major consequence, is that rate payers are highly likely to see a fall in rateable values, because of the fall in rental values in many sectors and parts of the country, especially in East Anglia, due to the economic recession, since the 2010 list was established using 2008 rents. Unfortunately, rates payable cannot be expected to fall in exactly the same way as the rateable values as the Government has a duty to maintain revenue and therefore the UBR is likely to offset substantive overall falls. This situation is highly likely to be exacerbated by the use of transitional reliefs. The exception to this scenario is in London where increased rateable values and increased UBR multiplier could result in a major effect on rates payable for those businesses located in the capital.
How can this affect the actual market rents payable now and in the future? For example retail rental values in Southwold have increased fourfold and in Great Yarmouth they have halved during the life of the current list. Over the life of the next list, which is likely to be for a period of 5 years, the amount of money available to tenants to pay for outgoings will remain fairly constant so monies available for rent will decrease in Southwold and increase in Great Yarmouth, thus this may have a direct effect on rental values and this should be factored into investment decisions going forward.
Publication dates of the new rateable values is likely to be September 2016 and from the start of this year, the VOA will need to value some 1.8 million non-domestic properties having a total value in the local rating lists of more than £57 billion.
One thing is hopefully certain, the principals of an appeal against any rating assessment will remain and relate to changes or inaccuracies in actual use, size, unique physical factors affecting premises and mode of occupation.
April 1st 2015 is not just April Fool's Day ..... it is also the actual valuation date for the 2017 Business Rating ...
Business Rates Update
April 1st 2015 is not just April Fool's Day ..... it is also the actual valuation date for the 2017 Business Rating Revaluation. Although the new rating list will not come into force until 1st April 2017, the revised values will be based on what will then be historic values as of this April. This ensures all properties share a common valuation date.
The basis for the revaluation will be market rental information pertinent to April 2015. It is acknowledged not all property will have a new rent established on that day as:
The premises may be occupied by the owner, rather than rented, or
There may be vacant accommodation, or
The passing rent may have been established at either an earlier or later date by way of a new letting, rent review or lease renewal.
However, in the majority of cases where premises have a contemporary rent, the rental evidence can be distilled into a rate per square metre, taking into account any relevant issues including the surrounding built environment, the physical characteristics of the premises, the lease terms agreed and any other pertinent factors.
The Valuation Office Agency (VOA) will consider all the evidence that it has collated to create a tone of values specific to an area that relate to premises of the same use, with the tone being adjusted to apply to each property, to reflect its unique characteristics.
Property occupiers may be asked to provide information on their property by the VOA, and should do so as it is a statutory obligation!
So, what this means is, any occupier who agrees a rent review or lease renewal or who acquires a new lease on premises in line with market conditions on or around 1st April this year, may have a good indication of the new rateable value which will apply in 2017. There is therefore extra incentive to make sure the rent is agreed at an appropriate level - to do otherwise might be doubly foolish
Jackie Crisp, FRICS, Partner, Roche Chartered Surveyors
Norwich will no longer be the largest city that is not connected to the motorway network via a dual carriageway ......
A11 dualling - the impact on commercial property
The long-suffering business community and residents of East Anglia that use the A11 as a means of connecting with the wider world, can finally look forward to the imminent opening of the last dual carriageway section of this vital trunk road.
Norwich will no longer be the largest city that is not connected to the motorway network via a dual carriageway. Journey times for people and goods will be reduced whilst predictability of arrival and delivery times will be dramatically improved. But what impact will this have on commercial property in East Anglia?
A sudden improvement in accessibility can change distribution patterns. The overall improvement in the accessibility of Norwich will undoubtedly enhance the City's appeal as a business location. However for distribution, it will now be easier for companies to cover the whole of East Anglia from, say, Thetford or Bury St Edmunds which are geographically more central. My firm is already advising logistics clients that are reviewing their operations in this way. Therefore, a boost for warehousing in the centre of the region.
Manufacturers will find it easier to get goods to and from East Anglia. This should reduce costs, improve service and therefore competitiveness. Logically, I expect to see improved demand for industrial units in Norfolk and Suffolk along the A11.
For retailers, critical considerations are catchment areas and drive-times. Therefore the big regional centres of Cambridge and Norwich will be further boosted by being more accessible from the centre of the region, possibly to the disadvantage of smaller towns between the main cities. Better communications within the region might also make East Anglia more attractive to big retailers such as IKEA and Decathlon as more households fall within an acceptable drive-time.
As far as offices are concerned, Norwich will be significantly enhanced, enabling it to challenge Cambridge with more credibility. With prime office rents exceeding £30 per square foot, arguably Cambridge has become over-heated. Norwich is roughly half this level and therefore well placed to take up the pressure. Norwich Research Park's competitive prospects are similarly enhanced.
It will take time for the consequences of this significant improvement in our road infrastructure to work through the economy and into the commercial property market. The overall impact will undoubtedly be positive but as improved accessibility opens up new markets, there will be greater challenges for businesses in some locations although I expect the over-riding impact to be extremely positive.
by James Allen, Senior Partner, Roche Chartered Surveyors, Norwich