BM Rural Outlook - Flipbook - Page 20
18 | Rural Outlook Issue 21
Planning & Development | 19
The strong performance of the industrial,
warehouse and logistics sector reflects
the ongoing structural shift towards
online shopping, a change that was
exacerbated by the global pandemic.
Growth in this sector saw new records
set in both the occupier and investment
markets across the UK in 2020.
Talking through
the commercials
Warehousing and logistics have emerged as the
winners following the retail shake up hastened
by the coronavirus pandemic.
While the shift to online shopping has
been accelerated by the pandemic, with
town centre retail space taking a major
hit, the move has prompted considerable
demand for industrial space to service
the needs of online sellers.
“This is another potential opportunity
for farm businesses that are looking
for new uses, particularly for large
barns,” says Ben Haugh, Commercial
Associate with Batcheller Monkhouse’s
Professional Department.
Ben was brought into the firm last
August to add his specialist commercial
experience to the skilled advice available
from the 14 RICS-registered valuers who
provide wide-ranging property advice
across the core commercial sectors of
retail, office and industrial space.
He believes the team’s broadened skills
base will allow it to look more widely at
the opportunities on offer for sites and
buildings across the South East. “As an
example, landowners tend automatically
to think of trying to sell land for a housing
development, but there are occasions when
applying for permission for a commercial
use could be more profitable,” he explains.
Batcheller Monkhouse is currently acting
for a major landowner who owns land
in East Sussex close to an existing
motor service area. Rather than focus
on housing, the team is looking at
commercial use of a wider area that would
tie in with the adjacent service area.
The level of demand is already
encouraging, with the first deals secured.
“Our broad range of experience allows
us to look at sites more holistically and
achieve the best return,” says Ben.
Landowners tend to think
of trying to sell land for a
housing development, but
there are occasions when
applying for permission for
a commercial use could be
more profitable.
With offices in Battle, Haywards Heath,
Pulborough and Tunbridge Wells,
the team has good local knowledge
and a strong background in property
management. It acts on behalf of major
banks and lenders, property owners,
property companies, developers and
estates as well as working alongside
accountants and solicitors.
Even before the pandemic, occupier and
investor demand across the retail and
office sectors was already subdued.
Commercial Property
Services offered by
Batcheller Monkhouse
• Asset Management
• Rent Reviews and
Lease Renewal
• Acquisition and Disposal
• Strategic Development
• Valuations
Batcheller Monkhouse does not see
it as being all doom and gloom for
the town centres and village parades
in Kent, Sussex and Surrey, though.
“While we agree with recently published
commentary by CBRE which outlines a
44% increase in UK online sales in 2020
due to Covid-19, and suggests we are
likely to see a 35% decline in clothing
and footwear floorspace by 2025, it is
now the responsibility of retail centres
to repurpose themselves,” says Ben.
“This is likely to mean tenants
reorientating their businesses and
landlords accepting a rebasing, but we
do not see the importance of retail areas,
social interaction and the destinational
nature of some retail offerings subsiding.
“What we envisage is more off-pitch
retail units being converted to residential
under permitted development rights, but
subject to prior approval and there being
greater flexibility for retailers to thrive
under the broader use Class E introduced
last September.
“Before the pandemic, regional offices
were often being converted to flats,
but the pandemic shone a light on the
benefits of working from home part of
the time and has encouraged occupiers
to turn away from dense business
districts like London to more spacious
regional office locations and out into
the countryside on farm-based sites.
“We envisage occupiers seeking to cut
costs by moving to regional offices or
rural hubs, and with many employers
likely to need far less floor space as
employees only visit the office two or
three times a week, this could boost
demand for local office space.
“This supports farmland diversification
by increasing the demand for commercial
uses such as industrial units and offices
in rural and countryside locations.
“Our message to farmers and landowners
who think there may be an alternative
commercial use for their buildings or land
is to get in touch. We can look carefully at
the options available, value the building
and help to maximise your return.”
Case Study
One of our estate clients is the owner
and landlord of two large barns in
Ticehurst, both of which were fully
occupied before the pandemic. When
the tenant of part of the larger barn
ended the tenancy, Ben negotiated a
new deal which saw the whole area
of 6,000 sq. ft leased for a further five
years to the majority occupier at an
increased rent.
The client says: “I am very grateful
to Ben for his help. We unfortunately
lost a tenant when a company that
supplied food stuffs to the pub and
hotel trade went into liquidation as a
result of the Coronavirus pandemic.
“Ben advised us on the best way
to find a business to take over the
storage space and created a lease
for an existing tenant to expand
at agreed rates into the vacant
area. The agreement was carried
out quickly and to the benefit of
both parties.”
Ben Haugh
b.haugh@batchellermonkhouse.com
“We expect retailers such as hair and nail
salons, as well as restaurants and pubs,
to bounce back. There will always be an
element of footfall into these areas and
there will be a ‘new normal’ as retailing
evolves. If physical shopping is made
more sociable and entertaining, online
brands cannot compete with human
interaction and customer service.”
Office space in the South East could also
benefit from some businesses changing
their requirements as a result of new
working practices prompted by Covid-19.
Physical shopping will have to evolve to attract footfall