Spring is nearly upon us and traditionally this is when activity
in the property market-place begins to accelerate. Properties
of all different shapes, sizes and qualities appear on the
market. One problem faced by businesses is understanding the
logic behind the amount paid for a particular property, or even the
units that property is valued in (usually calculated as £ per
square foot ).
The only way to be sure that you're paying the going rate for a
particular property is to pay for your own professional valuation
or instruct a property agent to negotiate the right price for
you. The observations in this blog are precisely that:
observations, rather than advice - but I hope you find them of
use.
Along the coast, properties range from just over £20 per square
foot down to below £10. To the uninitiated, this confusing
babble of prices and measurements can confound otherwise confident
and experienced businesses. Taking examples from Brighton
& Hove, here is a rough guide to office space
Over £20 per square foot:
e.g. International
House, Queens Road, Brighton speak to Phillip Hatley of Flude
Commercial (01273 727070) for more details on this property.
Traditionally, "Grade A" office space attracts the best
rents. In Brighton & Hove, however, only a tiny
proportion of stock in existence or being developed is truly Grade
A (and most of that is in the new AMEX building) - so chances are
you will be looking at other higher quality properties that may not
necessarily hit the traditional international standard. The
characteristics that you should look out for in if you're looking
at properties in these price-boundaries include:
• Good location with good accessibility;
• Notable or historic building;
• Newly built or newly refurbished;
• High quality finish;
• High quality services (air conditioning, climate control,
Category 5 Cabling etc);
• Good energy rating (something that may become more
financially important in the future).
Circa £15 per square foot
e.g. Castle House Woodingdean speak
to Simon Forrest of Oakley Commercial (01273 688882) for
more details on this property:
In a depressed market, there is a real mix of properties around
this range, including some newly built or refurbished properties so
there could be deals out there to strike, like the example above
(great space, but out of town). More typically though, you
will be looking at an office that has been previously used by
another occupier and left in a good state.
These offices are typically missing 1 or more of the factors
outlined for a £20+ property. The more that are missing, the
lower down the scale the property will slip.
Around or under £10:
e.g. New England House Brighton
(Christopher Broome, Cluttons 01273 738383) or 11a Jew St Brighton (Ben Pettit,
Oakley Commercial 01273 688 883):
Typically, these will be a bargain, but probably not the
most attractive of properties with various factors affecting the
ease of use by your business. You couldn't get away with
describing your premises as "prestige", although you can find
something quirky or individual (such as the irregular layout of the
expample from Jew St) in this price-range that suits a particular
type of business.
A lot of space above shops, out of town, or in slightly
dilapidated state (like New England House) falls into this
price bracket.
In summary then, as the price goes down, you typically get less
so no surprises. If you're out looking for the best deal
though, it is worth a reality check - you're unlikely to get the
Grade A space in the middle of town for a song, but on the flip
side, don't go paying over the odds for a wreck of
building, or something in the wrong location.
Once you've agreed on a price and the rest of the
draft Heads of Terms, then it's time to pick up the phone to
get us involved in the legals.