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."
Roche Retail complete three new shop lettings in The Guineas Shopping Centre .......
Newmarket - The Guineas - a trio of new lettings!
Roche Retail have recently complete three new shop lettings in The Guineas Shopping Centre to retailers, Pandora, CEX and Boots Opticians, which now means the shopping centre is fully let.
The Guineas Shopping Centre in Newmarket comprises a total of 110,000 sq ft with 46 retail units, having a mix of multiple retailers including Marks & Spencer, Argos, Poundland and Superdrug, but also strong independents such as The Pantry, Newmarket Sports and Peters Opticians.
Adrian Fennell of letting agents, Roche Retail, commented on the very positive effect that the three new retailers are having to Newmarket, adding to the retail vibrancy of The Guineas and encouraging new consumers to Newmarket. As a result there is a growing list of quality retailers looking to gain representation in The Guineas.
Roche recognised for industrial space expertise by the Estate Gazette ......
Roche recognised for industrial space expertise
Roche Surveyors have been recognised for their expertise in industrial space recently by the Estate Gazette. In the bi-annual industrial focus Roche were ranked as the second most active agent in the East of England for industrial property, outperforming a number of multi office businesses covering a far wider geographical area. Over the first 6 months of 2015 Roche transacted in 286,500 sq ft of warehousing and industrial accommodation.
Sam Kingston of Roche commented" it is pleasing to see our market knowledge and high level of instructions have placed us as the second most active agent across a wide geographical area. We are involved in a number of the largest transactions in Norfolk and beyond and the percentage of the market share we have is far greater than many of our larger competitors and our expertise is recognised by our clients". Notable transactions have included the sale of Caley Close a 133,000 sq ft warehouse to Peter Colby Commercials and the letting of a 30,000 sq ft warehouse at Vulcan Road, Norwich to Tuffnells, the parcel delivery business.
This award dovetails well with the EG's most active Norfolk Agent which Roche have held for the last 3 years.
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