The surge of confidence dominating the housing sector is having a positive impact on the commercial market, says leading South West commercial developer London and Devonshire Trust (LDT).
Daniel Stephenson, Managing Director of LDT, the company behind the new 22-acre industrial Plymouth Enterprise Park at Ernesettle in Plymouth, commented: “Market confidence has certainly been boosted by news that the UK economy has grown alongside the eurozone starting to emerge from recession. There’s no doubt that investors are being encouraged towards the commercial market due to the improving state of credit through the Bank of England’s Governor Mark Carney declaring his intention not to increase interest rates.”
In its latest report, real estate agency Savills stated that commercial property development activity across the country rose sharply in July and at the fastest rate since May 2007. According to Savills, the improvement was largely driven by private commercial work.
LDT states there are strong signs of green shoot growth in the South West that show developers are now keen to get projects moving. Mr Stephenson explained: “If we look at the M5 corridor, Cheshire-based property developer Gladman is pressing ahead with the launch of Cullompton Business Park off junction 28 for office and industrial uses. Exeter developer Eagle One is investing in the extension of the successful Matford Business Park. The company has outline planning consent for additional 500,000 sq ft of employment uses.”
LDT is submitting an outline planning application next month for the development of Plymouth Enterprise Park, which according to property agent Philip Kerr of Harcourt Kerr, has received notable interest despite, the traditionally slow summer months.
Mr Stephenson concluded: “Overall, sites are being primed for development signalling a positive outlook for the region over the next six months.”