The completion of the first design and build property for a decade marks a significant turning point in Carmarthen’s commercial property market according to Lambert Smith Hampton (LSH).
The national commercial property consultancy has worked closely with developer BMA SASS in pre letting a building on Parc Pensarn to Euro Car Parts (ECP), the UK’s number one distributor of car parts.
Built to ECP’s requirements, the company needed 6,500 sq ft of high eaves space and over two floors, and committed to a 10-year lease at a rent of £6 per square foot, the highest industrial rent achieved since the recession.
The building, Unit 1, was completed in April and ECP have just taken occupancy where this new Pensarn branch is employing 18 staff and, with six vans, distributing within Carmarthenshire as well as the surrounding areas of Gwendraeth Valley, South Pembrokeshire and Haverfordwest.
Jason Thorne, a director at LSH, is confident this particular deal will kick start more design and build developments, meeting a need in a market which he says has been stagnated by a severe shortage of good quality stock for far too long.
“This pre let is likely to have considerable impact on the Carmarthen and west Wales area by creating much needed accommodation and of a standard that can command higher rents,” he said.
“At a rent of £36,000 per year this demonstrates that occupiers value the quality of the workspace and operating environment over low rents and therefore are prepared to pay more.
“It is paving the way for more design and build pre lets as by building to a company’s specific requirements and with a guaranteed rental return, developers can secure the funding they need to make it happen.”
The size, specification and location suits ECPs requirements perfectly as the company strives to provide the best parts distribution service in the market and to represent the top supplier brands in the world.
It will deliver seven days a week and customers will have ready access to 14,000 lines of stock, as well as 45,000 stocked parts within one hour from the company’s Swansea hub.
BTS Consultants Chartered Surveyors advised ECP on the letting.