Affairs of state occupied the minds of property people at Cambridge’s Guidhall when it played host to one of Estates Gazette’s calendar events in the city. Ben Green, of Barker Storey Matthews’ agency office in the university city, was one of them.

The changing state of the nation

When a ‘save the date’ communication from Estates Gazette about its annual Cambridge Question Time debate buzzed our inboxes at the end of the summer, we were to be ‘BREXITing’ on the very date of the event. As it turned out, by the time we all met on 31 October, we were still in the European Union and had been advised a only few days before that we were, instead, to be facing a General Election on 12 December.

Uncertainty and weariness have, undoubtedly, characterised the national debate about big issues this year (2019). A similar pall was set to be cast over much of the Cambridge Question Time discussion, with the exception of some much-needed refreshing input from less world weary panel members.

It can feel as if we property professionals in Cambridge have been discussing and trying to find a way through, round or over the need for better infrastructure in the city and its surrounding sphere of influence since forever. It’s a clarion call and one round which all those with development and property interests here can rally.

So how interesting it was to hear then, during the debate, acknowledgment and unchallenged acceptance that any future central government administration – of any hue – will have to invest in the country’s infrastructure and that Cambridge is in a prime position to make its case for some of that investment cash.

Panellist Dr Graham Gudgin, Chief Economic Adviser to the influential think tank, Policy Exchange, pointed to the fact that such historically low interest rates would enable the government to borrow to fund this.

Coincidentally, a few hours later – and only a mile or two up the road from the Guildhall – the Prime Minister was visiting Cambridge’s Addenbrooke’s Hospital and giving media interviews in which the concept of central ‘seed funding’ for infrastructure improvements was very much the buzz phrase and, in all likelihood, will remain so in the coming weeks of the General Election campaign.

The frustrations of, and with, the planning system don’t seem to go away and property folk here are known for being self-confessed ‘doomsters and gloomsters’ about its effect on maximising Cambridge’s growth potential. We unite around the lament that Cambridge has grown despite of the planning system not because of it. And we can’t see any meaningful loosening of the Green Belt around the city. That was reinforced at the Guildhall event.

Concerns were also aired and shared about the present and future pipelines of recruitment for, in particular, service sector jobs in the city – given the inadequate supply of ‘affordable’ housing and public transport availability and accessibility.

These three areas of discussion are big policy concerns and are not exclusive to Cambridge but are felt acutely by those conducting business here. Those of us here try, literally, to navigate our way through a small, mediaeval city centre of excellence that needs to continue to keep attracting the world’s best brains, blue chips and investors.

In many ways, this Question Time event could have been in danger of becoming just the usual, annual, autumnal venting of the same hoary chestnuts. Those moans repeated so often by us that we even bore ourselves.

However, panellist Harri John, co-founder of CREation Property Network was a welcome breath of fresh air. In reporting what are some of the chief concerns of her network of a young generation of property talent, she reminded the room of what should be the major concern: climate change.

This new generation of professional property talent sees and experiences things differently. It has grown up with global connectivity and is empowered by it. It is urging its property employers and the wider industry to think differently and begin by tackling the smaller things and making changes that we can control in the workplace. We can begin with ditching the plastic coffee cups and thinking twice about travelling to meetings.

It’s all about a new mindset. There’s no uncertainty: change is coming.

In 2019, Barker Storey Matthew – now part of Eddisons – was identified as the most active regional property agency in the East of England for the sixth year in succession and the most active agent in Cambridgeshire for the eighth consecutive year by Estates Gazette who, in 2019, also awarded the accolade of the most active regional agent in the office, industrial, retail and investment sectors.

For more information about the property market in and around Cambridge, contact Ben Green, 01223 467155, [email protected]

 

The end is in sight for the upgrade of the A14 and its completion next year will only serve to reinforce the town’s primacy as an accessible commercial property hub, according to Richard Adam of Barker Storey Matthews – now part of Eddisons – who is based in the local office.

Occupiers and investors home in on Huntingdon

Strategically placed between the two cities of Cambridgeshire, lies the business hub of Huntingdon. The cities of Cambridge and Peterborough have contrasting profiles and, as such, appeal to divergent and diverse commercial occupiers. Positioned in the middle – figuratively, if not geographically accurate – is Huntingdon and that, in modern trading conditions, is proving its strength.

With a residential population of under 24,000 (23,732) recorded in the National Census of 2011, some might say the town of Huntingdon punches above its weight in proportion to the number of business employers based here. However, those of us who’ve worked and lived in the area for any significant period of time would disagree.

What gives Huntingdon its commercial heft is, quite simply, its transport links which are second to none in the county in serving the needs of business owners and those whom they employ.

The East Coast mainline train service runs through the county and Huntingdon railway station satisfies business commuters with direct train links serving London King’s Cross.

Many roads lead to and from the town and the surrounding district of Huntingdonshire, covering all points of the compass. The north is served via the A1(M) and also onward via the A14 west to the M6/M1 interchange in the midlands, leading to the north west; the south can be accounted for by the A1 and via the A14 and M11 and then the eastbound A14 leads to the Suffolk and Essex sea ports and the world beyond UK shores.

And, with the much anticipated end of the A14 road improvements on schedule for next year (2020), travel times will be improved and congestion eased for those moving through the area – as well as across it – with upgraded, dedicated local roads serving the needs of residential villages and communities whose populations live and work locally.

Add to the mix the expansive, landmark development that Alconbury Weald is shaping from the former airbase and it will be no surprise to know that property investors and occupiers have moved in on the area in the past two years with speculative development making a welcome return. From the Huntingdon office of Barker Storey Matthews now part of Eddisons , we’ve been instructed and successfully marketed to fulfilment and completion a number of such schemes.

In 2017, instructions on the first set of speculative industrial development scheme in Huntingdon for a decade saw plots and units move in short order at Kingfisher Court and Falcon Court during construction.

Similarly, less than a year ago, in June 2018, we began to market new-build units at Willow Court at Lakes Business Park on the edge of St Ives, a market town just south of Huntingdon. Interest was strong and business was brisk with deals done with a range of investor purchasers and investor owner-occupiers.

The point to emphasise here is that Lakes Business Park, from being a business location with passing interest and much potential for a number of years, took off and on a 12-acre site all available was under offer within an 18 month period.

From the property professional’s point of view, Huntingdon plays to its strength. It’s a location which attracts a range of business occupiers and it is not characterised by either office or large industrial occupiers. It is not overly dependent on one business sector, neither is it dominated by many big employers.

What does characterise and dominate Huntingdon, is its place in the county and on the country’s transport map and that is something which attracts investors and occupiers alike.

For more information about commercial property market opportunites in Huntingdon, contact Richard Adam on 01480 451578, [email protected]

Steven Mudd is based in the Bury St Edmunds office of Barker Storey Matthews now part of Eddisons and works on the property agency side of the business. His ‘typical’ day is varied and that’s the way he likes it. He particularly enjoys the people side of the property business.

Working day in the life of….Steven Mudd, BSc (Hons), PG Dip Surveying

 

8:00am

My car commute to the office takes about half an hour from where I live in Thetford. The journey gives me time to plan and think through the day ahead as the tunes from Radio 1 blast out in the car. If there are property viewings in and around the Thetford area – it’s becoming a very popular area for industrial occupiers – then I will do these, first thing, before heading to the office to action anything as necessary.

9.00am

The first two hours in the office are spent making calls and dealing with emails. It’s usually the busiest period of the day in terms of the number of activities. It’s one of my favourite times of the working day and not just because it’s accompanied by my first cup of tea.

On the agency surveyor side, the bulk of my office-based work is spent negotiating and progressing deals on behalf of clients we’re representing, be they landlords or occupiers, or dealing with enquiries about current instructions.

With my valuation surveyor’s hat on, this time is spent drafting and reviewing inspection notes and reports. Inspections will often get carried out at the same time as we’ve been commissioned by clients to carry out a valuation. These can be fascinating.

One time, I was accompanying Adrian Browne – who’s one of our Registered Valuers – on a residential portfolio inspection in Ipswich. We’d inspected every room before entering the living room where we found the owners…..asleep! On a recent residential valuation inspection – again with Adrian – there was the biggest-sized dog bone in the kitchen so we were thankful not to encounter the canine creature anywhere in the house during our visit.

I’ve also had to carry out an inspection in a funeral parlour where there was a body lain out in a coffin.

11.00am to 1.00pm

I like to book viewings around this time as it can coincide with a change of scenery for lunch and chance to stretch my legs. As a fairly early riser, I do sneak a pre-noon sandwich as I get really hungry.

It’s generally a sandwich lunch. However, I did attend an open day for two substantial new-build warehouses on the Suffolk Park development in Bury St Edmunds and was treated to a sit-down lunch by the hosts. It proved a good networking opportunity to catch up with fellow agents and surveyors – many of them the same age as me.

Proper lunches are a rarity and us younger agents and surveyors can only wonder at the tales of yore about the long, boozy lunches recalled, rather wistfully, by some of the senior, maturer surveyors.

2.00pm

Afternoons are spent on desk-based tasks and activities. I can be amending reports, compiling marketing details or organising mailouts of property details in response to enquiries about specific property instructions. I find that people respond better to receiving property particulars in the afternoon as they are too busy in the mornings.

5:30pm to 6.00pm

This time is spent ensuring there are no urgent matters outstanding and generally sees me attending to the day’s admin. That could be registering applicants on our database or making sure I have the keys and access arrangements in place for the following day’s visits.

We have a tidy desk policy and having been identified as our office’s second worse culprit, previously, I am now meticulous about tidying up. We deal with an awful lot of confidential – personal and financial – information so it’s imperative this is securely locked away and out of sight.

6:30pm

Evenings can see me making use of promotional vouchers and codes and out to a restaurant with my other half. Or, I can be at the cinema with an old friend from university who shares my taste in films in the way my other half doesn’t.

We’re gradually doing up our house which we bought as a ‘property project’ so we can often be found doing DIY of an evening. We’re making steady progress.

With the lighter evenings now, even our black labrador-retriever cross, Milo – who is twelve – doesn’t mind going out on his walk of the day. He’s such an old boy now so 15 minutes is about all he can manage. His morning walks are a thing of the past and we’re both happy about that.

Steven Mudd, Barker Storey Matthews now part of Eddisons, [email protected]

The proposed new ALDI supermarket in St Ives sees Michael Beardall of Barker Storey Matthews – now part of Eddisons – in Huntingdon consider why the value chains have gained ground in the supermarket sweepstakes.

The rise of the value supermarkets

Who doesn’t love a bargain? Yet it can be argued – and often has been – that since the credit crunch of 2008, shoppers’ expectation of ongoingvalue and affordability has, in the main, replaced the one-off bargains a few seasonal sales a year used to satisfy.

While fast fashion and flat-packed, high-stacked homewares characterise our search for value in what we put on our backs and in our homes, when it comes to comestibles, the rise and consolidation of the value supermarkets during the past decade chart our appetite for value when it comes to grocery shopping.

Chief among this type of prevailing supermarket are Lidl and ALDI. There are two Lidl stores in St Neots and one ALDI. Huntingdon hosts a Lidl and an ALDI store and a new ALDI is planned for St Ives. This proposed ALDI on Stocks Bridge Way, St Ives will be less than five minutes’ walk away from Parsons Green, off Harrison Way where Morrisons opened just over a year ago (08 March 2018).

Julian Welch is Barker Storey Matthews now part of Eddisons national lead on retail agency and he’ll confirm that the locations in which the value supermarkets trade in our area conform to the supermarkets’ very formulaic business model. Namely, they are just out of town centres on sites which, at the time the land was acquired, would be considered ‘unfashionable’.

Key to each of their locations is that they are easily accessible to areas of substantial residential population. That the Huntingdon, St Neots and St Ives areas of Cambridgeshire have seen unprecedented residential development and the opening of a number of value supermarkets there in the past decade is no coincidence.

My colleague contrasts the value supermarkets’ choice of site and store footprint – usually between 14,000 sq ft to 26,5000 sq ft outside of London – to that of the conventional ‘Big Four’ supermarkets of ASDA, Tesco, Sainsbury’s and Morrisons – although the latter to a lesser extent – rolled out in the 1990s and early 2000s.

Although there are local exceptions, the Big Four’s formula saw these established supermarket names pursue and secure land to establish massive units on either out of town retail parks – where they are often one of the anchor occupiers – or stand alone, large shop formats which can be anything from 40,000 sq ft to 100,000 sq ft.

Along with such sites and sizes come fixed costs to which they are committed long term and rising running costs.

Meanwhile, we have seen the demise of the traditional, weekly ‘big shop’ and the advent online shopping to ‘click & collect’ or for home delivery. We have changed the way we shop and also what we want from our shopping experiences. Responding to the way we live our lives now, has seen two of the Big Four turn to smaller units in town or city centres trading as Tesco Express, Sainsbury’s Local and Central.

The value supermarkets always have just one style of store and trading template to service. Their business model supports compact stores with an equally compact grocery offer. With a reduced number of lines and products, the value supermarketst are not wedded to holding ‘big brand’ products. With stores of their size, the aim is not to hold stock but to ship it in and ship it out through the tills in short order. This means they can be responsive to the fluctuations of fast moving consumer goods (FMCG) on the world market, with such a strategy and buying power, savings are passed on to the customer.

Yet they can keep customer interest with seasonal promotions on ambient – ie non-grocery – products such as pop-up hot tubs or sturdy walking boots. Similarly, customer interest is piqued by themed food promotions such as high-end Spanish meats or French charcuterie.

While these occasional promotions might see high ticket items within any one store, they are popular because they are perceived by customers as still offering value.

But whether it’s hot tubs or jamón ibérico, customers know these items will only be available for a short period of time because there is no surplus space for storage in the value supermarket model.

For more information about retail opportunities in the Huntingdon, St Ives or St Neots areas, contact Michael Beardall, tel 01480 451578, [email protected] or for the national retail property picture, contact Julian Welch, tel 01733 897722, [email protected]

Headlines lament the death of the high street but Julian Welch, Barker Storey Matthews now part of Eddisons retail specialist, looks beyond the headlines to reveal a retail picture in Peterborough away from the big names and the prime locations.

A High Street where small is beautiful

 

In a retail world where the big brands – and their big marketing budgets – can command the headlines whether in good times or bad, it’s not a happy place at the moment. Pharmacy and beauty retailer, Boots being the latest high street name to announce a programme of store closures this month (April).

However, in Peterborough we continue to chart low vacancy rates in the city centre. At the last statistical reckoning, vacancy rates here are 4.5 per cent compared against the national figure of 11 per cent.

This statistic is given life and meaning by property deals we’ve concluded at Barker Storey Matthews now part of Eddisons recently. The last four retail instructions we have marketed in the city centre – on Cowgate, Long Causeway, Westgate and Wentworth Street – have generated solid interest and multiple offers and all four went under offer very quickly. In addition, before completion, competition for one of the retail properties was at a level where a higher offer was made by a competing interest, thus gazumping the first party during negotiations.

It would be misleading to suggest this is happening across the piece when it comes to retail property. But, in our experience in Peterborough, these are the prevailing retail property market conditions in secondary shopping locations and on the smaller retail units here.

In locations such as these, rents are more affordable. More importantly, it is also the slice of the market where Small Business Rates relief applies. Retail occupiers operating at this level will have a greatly reduced, if not, zero business rates bill under the current regime.

A new central government initiative to help the high street is also set to further boost retailers operating from smaller units. For the next two fiscal years, 2019/2020 and 2020/2021, all retailers will receive a third (33.3 per cent) of a reduction in their business rates bill where the rateable value of their property is below £51,000.

Such measures serve to reinforce the view that Peterborough is a good place in which to do business. Something that us property insiders here have long known about the value of the city’s retail offering and who continue to bang the drum on behalf of this vibrant, Cambridgeshire city.

We would encourage any potential occupiers to peel away the headlines about the high street and take the time to talk to property agents who have experience of both the strategic and the day-to-day property scene in the city.

For more information about retail units to let and other retail property opportunities in Peterborough, contact Julian Welch at Barker Storey Matthews now part of Eddisons on 01733 897722.

As one key stage of public consultation affecting the development of Cambridge’s North East area came to a close towards the end of this month, Ben Green, Barker Storey Matthews now part of Eddisons head of agency in the university city, considers this next chapter in the story of Cambridge’s expansion.

Cambridge development: The North East ‘frontier’

 

Five o’clock on the afternoon of Monday 25 March 2019 saw the end of the initial public consultation on the North East Cambridge Area Action Plan, being jointly prepared by Cambridge City Council and South Cambridgeshire District Council. At the heart of this plan, alongside the developing-out of the area around Cambridge North railway station, is the proposed relocation of the water treatment works at Milton to enable the redevelopment of the 120-acre site to become the latest, significant development site in the ever-expanding city.

That consultation on this first strategic phase ended just shy of a fortnight after the Chancellor of the Exchequer confirmed £227 million of public funds to progress the proposed development is no coincidence.

The development project – earmarked for 5,200 new homes and up to one million square feet of commercial development – is of such major national significance that government grant to relocate Anglian Water’s treatment works is being made available in order to unlock the potential of the Cambridge North East Fringe.

In the story of Cambridge’s expansion, the development spans two chapters. It is certainly the last of the sites of any substantial scale within the city’s local authority boundaries and it also completes an arc of strategic regeneration and development projects to the north of the city.

This chapter of development, arguably, began in the early 2000s with the regeneration of Arbury Camp in becoming Orchard Park. Well underway now is the new settlement of Northstowe centred around the site of the former RAF Oakington and, in turn, the wholesale redevelopment of Waterbeach Barracks. On a smaller scale towards the north city village of Girton, there’s also the Darwin Green development – albeit the latter is residential, in the main, rather than mixed use.

Add these ‘northern’ located projects to the developing CB4 site around Cambridge North railway station and you can see how this North East Fringe district could be seen as the final project in a phase of the city’s development.

Yet in looking at the vision prepared for the development, it would be very wrong to characterise it as the ‘final frontier’.

It was last summer (July 2018) when we at Barker Storey Matthews now part of Eddisons joined in the chorus of approval by property professionals in the city when it was announced that U+I had been appointed as the masterplanner to lead the landmark project – whose value is calculated at circa £3.5 billion and will take 15 years deliver fully.

U+I is a development company with a reputation for its fresh approach to regeneration and redevelopment and a desire to roll-up its sleeves and creatively involve both community and commercial stakeholders in its projects from the get-go.

It’s regarded as a pioneer in developing brownfield sites, in which it specialises. And, not to be delicate about it, or, indeed, too frivolous, what could be a more challenging ‘brownfield’ site than one on which a water treatment plant has been for decades?

The proposed North East Fringe district cannot help but be the compass counterbalance to the North West Cambridge development of Eddington between Huntingdon Road and Madingley Road. As a development led by the University of Cambridge to its own brief, Eddington sees some striking and award winning commercial and community use buildings.

The calibre of the proposed North East Fringe development looks set to be part of a new movement in the development industry and, it will, in all likelihood set the tone for the next chapter of Cambridge’s development story.

For more information about development opportunities in Cambridge, contact Ben Green, 01223 467155, [email protected]

Property Consultants, Barker Storey Matthews – now part of Eddisons , have helped rapidly expanding Wisbech based SB Components on their next phase of expansion.

Barker Storey Matthews help SB Components to expand in £3M forward funding deal

 

SB Components are the UK’s leading supplier of bespoke components for commercial vehicles. The company already occupy several buildings in Wisbech and have an impressive customer base including many major retailers and logistics operations.

Having recently acquired another Wisbech based business, Priden Engineering, the company submitted plans to redevelop one of the Priden sites as a new state of the art Fleet Centre designed to serve larger commercial fleet customers.

Although they owned the freehold of the development site, SB’s preference was to lease the new building so they approached Barker Storey Matthews to act on their behalf to arrange a forward funding of the 26,000 sq ft development.

BSM advised on the lease terms in order to maximise the value from the site and having agreed the approach with SB an investor who would acquire the site and finance the construction of the new building in return for SB entering into a lease of the completed building.

A number of investors were appointed and having drawn up a shortlist of interested parties, investors were invited to submit their proposals in early November. Terms were quickly agreed with the preferred bidder and the legal documentation was concluded in January.

SB’s Managing Director, James Warren, added “We are a rapidly growing business and the new Fleet Centre will enable us to provide a dedicated service to our fleet customers. The expansion is also likely to increase our workforce from its existing level of around 200 to over 250.

Work on the construction of the new building has now commenced with completion scheduled for September 2019.

Martin Hughes is a Director of Barker Storey Matthews – now part of Eddisons and is Head of Professional Services. He has been based in the firm’s headquarters in Peterborough since joining as a trainee surveyor in 1999 and he’s plugged-in to the professional networking scene, locally. Having studied to achieve his degree and professional qualifications while working, Martin happily mentors the firm’s young graduate surveyors on their property career paths.

Working day in the life of….Martin Hughes BSc (Hons), MRICS, Registered Valuer

 

06:00am (or earlier…)

‘First thing’ is a moveable feast in a house with a young toddler. It can be as early as a 4.00am wake-up and, even if we can settle our daughter back to sleep, I’m wide awake and make the most of the early morning to check on work emails and plan the working day ahead.

07:30am

If it’s a day when I am in the office first, I like to head down the A15 from home in Bourne ahead of the bulk of commuter traffic to Peterborough.

In the winter, if I’ve a site visit for a valuation or viability assessment, I like to do this as soon as possible in the morning. It’s important to see a site or a property in the daylight. If it’s summer, I can tag a site visit on at the end of the working day.

We have six registered valuers, including myself, and we all like to get out and about on site visits. I guess it’s because the real bulk of our work is analytical and while writing reports for, and on behalf of, clients is the meat and drink of our work, the starting point of the thinking process is visiting and inspecting the property or site itself.

A recent site visit saw me at an old Magistrates’ Court on a valuation visit with another visit being with one of our planners at a local authority to discuss the viabililty of providing affordable housing as part of a residential extension to a large village.

12:30pm

Immediately following site visits, when back at the office, I like to make a note of my initial thoughts which then feed in to the more detailed report, further down the line, once supporting evidence has been researched and gathered.

1.00pm

I am thinking about lunch when I really should be thinking about running before lunch! I try to run at lunchtimes so it was great when we moved to the new headquarters at The Lawns on Thorpe Road, just over a year ago, as it has shower facilities.

2:00pm

It’s head down to start a new report and review the latest draft of another one for a lease renewal. There’s a time pressure on the latter as an occupier client’s current lease is ending very soon and he needs an evidenced report about comparable rental levels ahead of lease renewal negotiations.

Whether working for a landlord or a tenant on a lease renewal or a rent review, the crucial thing is evidence set against the current and prevailing market conditions in the locale and on comparable properties.

As somebody who enjoys detail and analysis, I feel ‘at home’ writing solid and comprehensive reports for clients – particularly if the other party is represented by a surveyor with a similar mind set.

Whether the result is winning a tender submission, a successful business rates appeal or a rent reduction or increase, as appropriate, I can’t be alone in getting a great deal of satisfaction when negotiations turn out in favour of a client.

4:15pm

Having worked at Barker Storey Matthews when studying, part-time, for my degree and then the RICS Assessment of Professional Competence (APC) qualifications, I am very disciplined when it comes to managing my time efficiently.

I’ve got 15 minutes to check my notes before the 4:30pm board meeting where I will be updating all the directors on the progress of our young graduate surveyors, one of whom has recently attained APC status.

5:45pm

If it’s not my turn to collect our daughter, I can stay back to avoid the worst of the homeward bound surge of traffic so I can catch-up on admin-type tasks such as timesheets and fee-billing, as well as acknowledging and processing the day’s non-urgent emails and voicemails.

7:30pm

On my return, the house is quiet which means our daughter is asleep and quite often my wife is too! A house with a toddler and one parent on shifts makes for an interesting working day for us all.

Martin Hughes, Barker Storey Matthews now part of Eddisons, [email protected]