Bedford’s leafy sobriety contrasts with the concrete and steel developments around the town. But, as Cheryl Freedman reports, it is drawing in the tenants
The completion of Bedford’s southern bypass – linking the A421 to the A428 and on to the A1 – may have helped the town to grab the attention of potential occupiers but, among local agents, it is still the source of some dispute.
Most commentators share the views of agents such as David Tillison of Douglas & Co, who says: “The market has improved considerably since the opening of the bypass in 1996.”
But others, such as David Smith of Lambert Smith Hampton, remain to be convinced. “It certainly hasn’t harmed Bedford,” he says. “But it’s not right to say it’s made a difference either.”
The effects of the bypass may be questionable, but Tillison says that in the past 18 months his company has let some 46,450m2 (500,000 sq ft) of industrial and warehouse space within the borough of Bedford.
“During this period rental levels have increased by some 30-35%,” he says. “And typical rents for buildings of929-2,323m2 (10,000-25,000 sq ft) are now in the region of £38-£48 per m2 (£3.50-£4.50 per sq ft.)”
Take-up of stock
Bedford’s main advantage over competitors, such as Milton Keynes and Peterborough, has always been its relatively low costs. But the market has paid the price in a recent take-up of stock.
Says Tillison: “There is now a shortage of available accommodation in the town, with little land available for development to take place.”
Smith agrees, adding: “It is a situation where stock on the market has reduced and demand has been sustained or is slightly better. There is a significant gradual take-up of vacant space.”
Perhaps the best test of Bedford’s rising appeal in recent months is the fact that the 7,088m2 (76,297 sq ft) Bedford Business Centre on Mile Road, built speculatively in the early 1990s, is now fully let.
The final unit, comprising 492m2 (5,295 sq ft), has gone to Raytheon TI Systems. Lambert Smith Hampton and Douglas & Co acted for landlord Versteegh.
Richard Last of Lambert Smith Hampton says: “The letting of all 28 units on the park depicts a landmark in Bedford’s commercial property market and is an indication of the rising market.”
The council’s 28.3ha (70 acre) Priory Park on Manton Lane is also attracting tenants. Windscreen repairer Autoglass has now moved into its new 3,716m2 (40,000 sq ft) headquarters office building, joining occupiers like Unilever, Bedford’s biggest player.
Eight miles north of Bedford, the former MOD site, Thurleigh Airfield Business Park, which developer St Modwen acquired 18 months ago is also faring well. Smith of Lambert Smith Hampton, sole letting agent, reports lettings of more than 14,864m2 (160,000 sq ft) at about £32 per m2 (£3 per sq ft), while 8.1ha (20 acres) of land was sold for an undisclosed price in the past year.
Recent deals on the mixed industrial site involve vehicle logistics company PanTech, which took 11,613m2 (125,000 sq ft) of space, and distributor Richard Lawson, which signed for 3,280m2 (35,303 sq ft). Kingston Satellite Services has also taken 650m2 (7,000 sq ft) of office space. Henry Butcher acted for Kingston.
Smith says that St Modwen’s acquisition was a “brave move on its part, but it saw it as a good chunk of strategic land suitable for a range of uses”.
Bedford’s industrial market has also attracted some investment deals. Both the Viking and Arkwright Industrial Estates, totalling 41,805m2 (450,000 sq ft), have been sold. J Savill Gordon, represented by Douglas & Co, acquired the former for more than £4m. And the Viking Estate was sold close to its asking price of £9.1m.
The market has also seen the expansion of locally based company Arrow Electronics. Its latest deal took place at Cross Park, Cambridge Road, one of Bedford’s chief industrial centres, adjacent to Elms Farm Estate.
Lambert Smith Hampton and Savills, acting for Kingspark, sold 0.8ha (2 acres) to the firm, allowing it to expand a neighbouring warehouse. George Trollop acted for Arrow.
Large occupiers looking for aready-made slice of space in the vicinity could consider the 15,421m2 (166,000 sq ft) Bedford Heights, where a taker still has to be found. Former occupier Texas Instruments is offering a £1m cash incentive to tenants who take the entire building. Rents are quoted at £52 per m2 (£4.80 per sq ft).
Smith, whose Lambert Smith Hampton is joint agent with Douglas & Co, says: “We’ve had quite a lot of interest from call centre operators.”
There has been some take-up of office space in Bedford’s centre. On Bromham Road, Activ Trading has signed for a further 418m2 (4,500 sq ft) in Activ House at £70 per m2 (£6.50 per sq ft), while, according to Tillison, 697m2 (7,500 sq ft) is about to let in Newspaper House.
Like offices and industrial, Bedford’s retail market is predominantly a local one. The main focus is the Harpur Centre, Allied Dunbar’s covered mall on Midland Road, which is almost fully let. Agents are Dalgleish & Co and Conrad Ritblat. Recent lettings went to Toni & Guy, Contessa and Phones 4 U, with zone A rents reported at £484 per m2 (£45 per sq ft) and upwards.
UPDATE
Caxton Park, Elms Industrial Estate: Industrial. XB Data Spares has taken a five-year lease on 650m2 (7,000 sq ft) at £48 per m2 (£4.50 per sq ft). Douglas & Co represented landlord AJ Mucklow.
Thurleigh Airfield Business Park: Industrial. Logistics company PanTech has taken 11,613m2 (125,000 sq ft) of space and 4.1ha (10 acres) of hardstanding land on a 25-year lease with a 10-year break. Lambert Smith Hampton acted for St Modwen. PanTech was unrepresented. Also at Thurleigh, vehicle distributor Richard Lawson has taken 3,280m2 (35,303 sq ft) on a 25-year lease. Rents are quoted at about £32 per m2 (£3 per sq ft).
Thurleigh Airfield Business Park: Offices. Kingston Satellite Services has taken a 10-year lease on 650m2 (7,000 sq ft) of offices at £60,000 pa. Henry Butcher acted for Kingston.
Bedford Business Centre, Mile Road: Industrial. Raytheon TI Systems has taken a 12-year lease on a 492m2 (5,295 sq ft) unit (pictured) at £78 per m2 (£7.25 per sq ft). LSH and Douglas & Co advised landlord Versteegh.
Arkwright Industrial Estate: Industrial. Arrow Electronics has taken a two-year lease on 771m2 (8,300 sq ft) at £43 per m2 (£4 per sq ft). LSH represented CAEC Howard.
42-44 Ashburnham Road: Offices. North British Housing Association has bought, by tender, the 593m2 (6,383 sq ft) MAFF offices. LSH represented the vendor, PACE. The association plans to develop affordable housing on the site.
16 Hudson Road: Investment. Securum has sold 4,227m2 (45,500 sq ft) to Price’s Candles for £800,000. LSH acted for Securum. Price’s Candles was unrepresented.
