LSH updates on robust Northamptonshire office market

Northamptonshire’s office market continued to enjoy robust take-up last year, propped up by strong demand for small freehold acquisitions.   According to Lambert Smith Hampton’s Northamptonshire & Rugby Report 2008, demand for sub-10,000 sq ft freehold purchases accounted for a significant proportion of last year’s activity.   The office market overall saw strong activity in 2007 although demand slowed at the end of the year. Take up was 200,970 sq ft – similar to 2006 levels.   Availability levels have increased by 15% from 262,157 sq ft in 2006 to the current 310,400 sq ft.   Yields have moved out to 6%-6.5% for prime office space.   Meanwhile, Northampton remains a key distribution location, although rising land values, land availability and the lack of industrial buildings has constrained the market.   The report stated that  around 1.2m sq ft of industrial space is available – a 9% rise on 2006 levels of 1.1m sq ft.   Industrial take-up in Northampton’s industrial market remained healthy last year with figures at 1.5m sq ft reflecting a 50% hike on 2006 levels.   Prime rents stand at £5.75 per sq for units over 10,000 sq ft and £6.50 for sub 10,000 sq ft.   Freehold values have achieved £95 per sq ft on units of up to 10,000 sq ft.  With quoting prices now hitting £100 per sq ft, LSH expects rental and capital value growth in the market.   lisa.pilkington@rbi.co.uk