2022 still ripples through what’s in store for 2024

William Wall, Director, Eddisons Lincoln takes stock of the commercial agency property market at the end of the year in which his firm, Banks Long & Co, was acquired by the national consultancy:

The global and national events of 2022 have contributed to make 2023 an interesting and challenging year in leading to a variety of cost pressures, including inflation and interest rates adjustments. The property community is not immune from sharing the general public’s feeling of exhaustion with it all.

And Lincolnshire has not been immune from the macro-economic factors either.

Lincoln, however, has weathered the storm perhaps better than other dominant provincial cities.

For Eddisons in 2023, the industrial sector has proved to be pretty resilient and the theme repeated across agency offices in the East and East Midlands is that lack of supply has helped to underpin both rents and prices.

The industrial and trade sector has recovered more quickly from 2022 with a number of notable deals in 2023. Namely, the continued growth of the successful St Modwen Park in Lincoln, with 52,000 sq ft let to a PLC, and negotiations ongoing for a brand new 111,000 sq ft warehouse.

A number of freehold sales have been concluded with occupiers and we have been actively acquiring well-let investments for retained clients including the 93,000 sq ft multi-let Atepa portfolio, and single assets in established locations such as Goole and Sheffield.

The challenge in this industrial sector is the lack of good quality product and that is a challenge our agency team is working hard to overcome.

In 2023, we’ve overseen the delivery of a number of investment and development projects. These include the sale of The Moorland Centre, a large convenience anchored retail scheme, sold to FPG at a price which was held at a previously agreed level in 2022, showing the strength of the location.

In the city centre, we played a pivotal role in acquiring The Waterside Centre for the joint venture between Lincolnshire Co-operative and Wykeland Group. This transaction reflects the wider opportunity across the UK for buying good quality prime city centre retail assets at a significant discount to historic valuations.

Eddisons incorporating Banks Long & Co continues to advise on the re-invention of Lincoln Central Market. During 2023, the landmark building has been totally redeveloped and our agency has generated over 150 enquiries for the 37 units in the new Cornhill Market.

Lincoln city centre continues to attract strong demand from the food & beverage market - notable deals in 2023 included lettings to Turtle Bay, Franco Manca and Mowgli.

Nationally, in facing 2024, inflation appears to be cooling. There are early signs of stability in the general economy, with inflation down to less than 5 per cent. The general consensus of opinion is that interest rates may have peaked, although they may stay uncomfortable for longer than expected.

As such, we are already seeing signs of increased interest in the investment market but those with cash may wait for further pain before making their move.

As we close the year, there is more confidence and optimism starting to filter back into the market within the Lincolnshire region.

We see a more positive environment within our region as 2024 unwinds itself.