Welcome to Barty's Blog...
Barty has some interesting, sometimes controversial views on our industry but more importantly, has his fingers on the pulse of what's going on. So have a look down the posts below and appraise yourself of Barty's wisdom.Barty's tweeting like a professional twit
15 July 2011
Barty has decided it’s time to embrace the modern way of doing business and started tweeting about all the latest news, information and properties to come onto the market. So please follow him to get this old wise twit’s twitter tweets.
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The Commercial Property Market 2011
21 March 2011
Barty has provided a light hearted overview of how he sees the commercial property market today ((2011)-best not talk about 2010) -on the following subjects below:-
Banks and valuations
Market perceptions versus reality
Land
Planning
EPC’s and all
Receiverships
Local economy versus national reality…the Dorset Economy
And the great rating revaluation
Banks and valuations
Really things are no different from 2009/2011 ie
"Reckless lending peaked in 2007 culminating in an excess of cash about and an overheating of the property market across the board and understandably the bubble burst and we have really paying for the consequences ever since. With banks trying to rebuild margins we have noted that even the local bank managers are unable to secure lending for clients often needing to go further up the line leading to yet more uncertainty.
Valuers have understandably been taking a very cautious view.
However there are cash buyers around and there seems to be a marked difference to the last recession -there are more people with money. We have also seen quite a bit of off shore investors whom like the weak pound, bricks and mortar and the safety that the stability of Dorset offers.
Market Perception-Dorset
The above and the media had the effect of no-one wanting to sell and the perception the market is worse than it is so the market has self regulated and cuts the supply down. This applies to housing as well. Dorset is hence not really like the big commercial and populated areas where it can quickly go into over supply and employment can spike. There are no jobs down here in the first place to lose!- although some will argue that the Council cuts have put a bit of a shadow over things. We think this will in reality make no difference to values but negative sentiment will always slow the market and create uncertainty. With a limited land supply and employment in the first place it is not going to get suddenly worse in West Dorset but this may not hold for "drone" towns where you would not live if it wasn't for the fact that they have an employment supply.
Of course where there is some vacancy rents have dropped back a bit and owners are eager to rent again due to the penal empty rates regime.
Land
Land is very scare here in West Dorset and with tight planning little is coming through the pipeline. Although land values dipped back quite a bit initially the supply factor has come into play. Finance however remain difficult and the banks do not like flatted schemes very much.
Development is cyclical but if you don't start working the schemes up now there will be less development and growth in the future.
Planning
We have noticed a greater willingness from planners to seek employment related industries many of which are B1 usage when they were previously fixated on the old style B2 factory use. Modern "factories" are as such probably B1 usage although some Councils still have an issue with B8 warehousing as they say it does not create employment nor do they like vehicle repairs.
Epcs
The advent of Energy Performance Certificate is an EEC requirement. Need I say more but it is a requirement and we cannot market or conclude transaction without them. A few basic properties are exempt
Asbestos
Probably of more concern to building owners and ocupiers built up to around 1990. Unlike EPC's it can result in fatalities and in this litigious world it cannot be ignored as far as your risk assessments are concerned. An owner may be asked to supply an asbestos survey by an ingoing ocupiers by right.
Receiverships
The pre-pack receivership has hence seen many landlords simply losing their tenant which seems to start up again in the more profitable shops and hence the question is a multiple a good covenant compared to a local. Right now I would say no from a private investor aspect although once we get into prime shops this might affect value. The re-emergence now of the local retailer is very encouraging -landlords want them, rents have dropped back a bit so those savvy enough are using the negotiating power to get some better deals and softer terms. It is generally more exciting now than the "clone" high streets and I guess some of the small exciting retailers are the multiples of tomorrow.
Commercial wise this is no different from 2009 and we have noticed some strain from some of the heavier engineering type co as home market and MOD contracts subside. On the other hand some exporters really quite happy due to weak pound.
Office demand outside the key towns is sporadic and fragmented at best.
The Dorset Economy
Some retailers and hoteliers have had a very good run over summer (the staycation) and the poor weather has forced holiday makers off the beaches into the shops. Despite this I think bookings remain very good for next few years so this important and major sector of our local economy is alive and kicking. The Olympic thing has got to be good thing overall in terms of area publicity although we are not sure we we have capitalised on this locally so it will help local business as well as it could do.
Overall we still seem to bouncing along the bottom but we are optimistic hat 2012 will be better and we are already finding larger companies investing for this predicted growth. As we all know a new war gets business fired up again!
Rating
The big revalulation has been done and came into effect April 2010.
We now employ a rating consultant and we have noticed several anomalies with a heavier rating burden on some types of occupier than there perhaps should be particularly in Weymouth. Some are just wrongly assessed using comparables from properties that are far more expensive but also some are just wrongly assessed in the rate payers favour so one needs to take care before objecting!
Increases are of course cushioned by transitional relief and it is this fact that some forget to look into it properly. In our opinion it is no different to be wrongly taxed.
Call our office to discuss
That's the theory ....Barty is off for another lie down
Banks and valuations
Market perceptions versus reality
Land
Planning
EPC’s and all
Receiverships
Local economy versus national reality…the Dorset Economy
And the great rating revaluation
Banks and valuations
Really things are no different from 2009/2011 ie
"Reckless lending peaked in 2007 culminating in an excess of cash about and an overheating of the property market across the board and understandably the bubble burst and we have really paying for the consequences ever since. With banks trying to rebuild margins we have noted that even the local bank managers are unable to secure lending for clients often needing to go further up the line leading to yet more uncertainty.
Valuers have understandably been taking a very cautious view.
However there are cash buyers around and there seems to be a marked difference to the last recession -there are more people with money. We have also seen quite a bit of off shore investors whom like the weak pound, bricks and mortar and the safety that the stability of Dorset offers.
Market Perception-Dorset
The above and the media had the effect of no-one wanting to sell and the perception the market is worse than it is so the market has self regulated and cuts the supply down. This applies to housing as well. Dorset is hence not really like the big commercial and populated areas where it can quickly go into over supply and employment can spike. There are no jobs down here in the first place to lose!- although some will argue that the Council cuts have put a bit of a shadow over things. We think this will in reality make no difference to values but negative sentiment will always slow the market and create uncertainty. With a limited land supply and employment in the first place it is not going to get suddenly worse in West Dorset but this may not hold for "drone" towns where you would not live if it wasn't for the fact that they have an employment supply.
Of course where there is some vacancy rents have dropped back a bit and owners are eager to rent again due to the penal empty rates regime.
Land
Land is very scare here in West Dorset and with tight planning little is coming through the pipeline. Although land values dipped back quite a bit initially the supply factor has come into play. Finance however remain difficult and the banks do not like flatted schemes very much.
Development is cyclical but if you don't start working the schemes up now there will be less development and growth in the future.
Planning
We have noticed a greater willingness from planners to seek employment related industries many of which are B1 usage when they were previously fixated on the old style B2 factory use. Modern "factories" are as such probably B1 usage although some Councils still have an issue with B8 warehousing as they say it does not create employment nor do they like vehicle repairs.
Epcs
The advent of Energy Performance Certificate is an EEC requirement. Need I say more but it is a requirement and we cannot market or conclude transaction without them. A few basic properties are exempt
Asbestos
Probably of more concern to building owners and ocupiers built up to around 1990. Unlike EPC's it can result in fatalities and in this litigious world it cannot be ignored as far as your risk assessments are concerned. An owner may be asked to supply an asbestos survey by an ingoing ocupiers by right.
Receiverships
The pre-pack receivership has hence seen many landlords simply losing their tenant which seems to start up again in the more profitable shops and hence the question is a multiple a good covenant compared to a local. Right now I would say no from a private investor aspect although once we get into prime shops this might affect value. The re-emergence now of the local retailer is very encouraging -landlords want them, rents have dropped back a bit so those savvy enough are using the negotiating power to get some better deals and softer terms. It is generally more exciting now than the "clone" high streets and I guess some of the small exciting retailers are the multiples of tomorrow.
Commercial wise this is no different from 2009 and we have noticed some strain from some of the heavier engineering type co as home market and MOD contracts subside. On the other hand some exporters really quite happy due to weak pound.
Office demand outside the key towns is sporadic and fragmented at best.
The Dorset Economy
Some retailers and hoteliers have had a very good run over summer (the staycation) and the poor weather has forced holiday makers off the beaches into the shops. Despite this I think bookings remain very good for next few years so this important and major sector of our local economy is alive and kicking. The Olympic thing has got to be good thing overall in terms of area publicity although we are not sure we we have capitalised on this locally so it will help local business as well as it could do.
Overall we still seem to bouncing along the bottom but we are optimistic hat 2012 will be better and we are already finding larger companies investing for this predicted growth. As we all know a new war gets business fired up again!
Rating
The big revalulation has been done and came into effect April 2010.
We now employ a rating consultant and we have noticed several anomalies with a heavier rating burden on some types of occupier than there perhaps should be particularly in Weymouth. Some are just wrongly assessed using comparables from properties that are far more expensive but also some are just wrongly assessed in the rate payers favour so one needs to take care before objecting!
Increases are of course cushioned by transitional relief and it is this fact that some forget to look into it properly. In our opinion it is no different to be wrongly taxed.
Call our office to discuss
That's the theory ....Barty is off for another lie down
Changes to the commercial property market 2009
28 September 2009
Barty has been a bit preoccupied of late but has provided an overview of how he sees the commercial property market today -on the following subjects below:-
Banks and valuations
Market perceptions versus reality
Land
Planning
EPC’s and all
Receiverships
Local economy versus national reality…the Dorset Economy
And the great rating revaluation
Banks and valuations
Reckless lending peaked in 2007 culminating in an excess of cash about and an overheating of the property market across the board and understandably the bubble burst and we have really paying for the consequences ever since.
In 2009 this leads to difficult bank finance and greater equity requirement. Banks have been very tough with existing clients (the same people on 2007 they where happy to lend to) and we have seen some go to the wall having had overdrafts withdrawn and the goalposts moved on long established businesses. Valuers have equally been told to be very cautious from directives from the RICS and their indemnity insurers and have been taking a very cautious view.
However no shortage of cash buyers though and there seems to be a marketed difference than last recession as more wealth is stored. Quite a bit of off shore investment who like Dorset and bricks and mortar. In fact The Irish like Dorset more than Dorset people
Market Perception-Dorset
The above and the media had the effect of no-one wanting to sell, perception the market is worse than it is and the market has self regulated and cuts the supply down. Applies to housing as well. Dorset hence not really like the big commercial and populated areas where it can quickly go into over supply and employment can spike. There are no jobs down here in the first place! With limited land supply and employment in the first place not going to get suddenly worse -pop up to Yeovil and I think the picture is completely different.
Of course where there is some vacancy rents have dropped back a bit –owners eager to rent again due to empty rates
Land
A sector of thought is that property economics depends upon the land supply and land sales fell dramatically dropping by about half to 60% in residential but are improving again. Land very scare here in Dorset and with tight planning little is coming through the pipeline.
Development is cyclical but things still don’t bode well for imminent start on the South West Quadrant or indeed Charles Street-no finance.
Planning
We have noticed a greater willingness from planners to seek employment related industries many of which are B1 usage when they were previously fixated on the old style B2 factory use, Modern factories are as such probably B1 usage although still have an issue with B8 warehousing as they say it does not create employment. It does.... so someone doesn't know what theya re talking about
Epcs
The advent of Energy Performance Certificate (in line with domestic Hip) late last year and requirements now for all marketed property to have an EPC done. Effectively being forced to self assess which then becomes a public document so it will be ironic when we all get rated on energy performance in the future-having paid for it ourselves. Has been relatively expensive but now the contractors are in oversupply and getting cheaper.
We have seen requirements for asbestos surveys from acquiring lawyers so bear this in mind if you own a building when asbestos was the building materials -it could delay proceedings if not removed.
Receiverships
Letting wise many retailers closed quite early on (hobby retailers) and badly run corporates. Adams, Woolsworths, Cardfair, MFI, Focus etc
The pre-pack receivership has hence seen many landlords simply losing their tenant which seems to start up again in the more profitable shops and hence the question is a multiple a good covenant compared to a local. Right now I would say no from a private investor aspect although once we get into prime shops this might affect value. The re-emergence now of the local retailer is very encouraging -landlords wants them, rents have dropped back a bit so those savvy enough are using the negotiating power to get some better deals and softer terms. It is generally more exciting now than the "clone" high streets and I guess some of the small exciting retailers are the multiples of tomorrow.
Commercial wise we have noticed some strain from some of the heavier engineering type co as home market and MOD contracts subside. On the other hand some exporters really quite happy due to weak pound.
Office demand outside the key towns is sporadic and fragmented at best.
The Dorset Economy
Some retailers and hoteliers have had a very good run over summer (the staycation) and the poor weather has forced holiday makers off the beaches into the shops. Despite this I think booking are good for next year so this important and major sector or economy is alive and kicking.
Rating
This is the big reval that has in effect already taken affect with figures published on line in October and coming into effect April 2010.
Empty Rates has been a rotten trick and will be abolished for properties up to £15,000RV next year
At the moment shops and offices 3 months industrials 6 months is all you get
Beginning to gear up for 2010 and information beginning to become available
Current rateable values based upon 2005 rental values and new rates coming into effect April 2010 based on market rentals in April 2008 or in the case of certain uses based on trading accounts eg licensed premises
Rates are collected by local authorities, nationally pooled and then redistributed-not all revenues stay in our area
More on this on businesslink.gov.uk or Communities and Government Website
Inland Revenue Valuation Offices-Valuation Office Agency (civil service) is tasked with the valuation exercise and estimates of of their assessment on rateable values will be published on line 1st October 2009 although can’t formally object until April 2010 www.voa.gov.uk/2010 From this if you think your rates are wrongly assessed from a valuation perspective eg it is incorrectly described call one of the local specialist rating surveyors/chartered surveyors or VO direct for an informal discussion.
Please watch the scam-sters. Anyone acting for fees upfront to reduce your rates should be regarded as suspect and was a major
What if rates go up? Impact will be reduced by transitional relief
What if my rates go down? Decrease reduced by transactional relief to pay for the above!
Transactional relief –methodology not fully decided upon yet so more to follow
Small rates relief may increase to £15,000 RV but most people rateable value will increase also so could take some out of relief-must remember to reapply for small business rates relief every 5 years.
There is also a rural rates relief scheme with slightly better "discounts" to those qualifying
All in all it is expected that bias will increase slightly to office based tenants with a very slight easing to industrial occupier at the other end of the occupier spectrum.
That's the theory ....Barty is off a lie down
Banks and valuations
Market perceptions versus reality
Land
Planning
EPC’s and all
Receiverships
Local economy versus national reality…the Dorset Economy
And the great rating revaluation
Banks and valuations
Reckless lending peaked in 2007 culminating in an excess of cash about and an overheating of the property market across the board and understandably the bubble burst and we have really paying for the consequences ever since.
In 2009 this leads to difficult bank finance and greater equity requirement. Banks have been very tough with existing clients (the same people on 2007 they where happy to lend to) and we have seen some go to the wall having had overdrafts withdrawn and the goalposts moved on long established businesses. Valuers have equally been told to be very cautious from directives from the RICS and their indemnity insurers and have been taking a very cautious view.
However no shortage of cash buyers though and there seems to be a marketed difference than last recession as more wealth is stored. Quite a bit of off shore investment who like Dorset and bricks and mortar. In fact The Irish like Dorset more than Dorset people
Market Perception-Dorset
The above and the media had the effect of no-one wanting to sell, perception the market is worse than it is and the market has self regulated and cuts the supply down. Applies to housing as well. Dorset hence not really like the big commercial and populated areas where it can quickly go into over supply and employment can spike. There are no jobs down here in the first place! With limited land supply and employment in the first place not going to get suddenly worse -pop up to Yeovil and I think the picture is completely different.
Of course where there is some vacancy rents have dropped back a bit –owners eager to rent again due to empty rates
Land
A sector of thought is that property economics depends upon the land supply and land sales fell dramatically dropping by about half to 60% in residential but are improving again. Land very scare here in Dorset and with tight planning little is coming through the pipeline.
Development is cyclical but things still don’t bode well for imminent start on the South West Quadrant or indeed Charles Street-no finance.
Planning
We have noticed a greater willingness from planners to seek employment related industries many of which are B1 usage when they were previously fixated on the old style B2 factory use, Modern factories are as such probably B1 usage although still have an issue with B8 warehousing as they say it does not create employment. It does.... so someone doesn't know what theya re talking about
Epcs
The advent of Energy Performance Certificate (in line with domestic Hip) late last year and requirements now for all marketed property to have an EPC done. Effectively being forced to self assess which then becomes a public document so it will be ironic when we all get rated on energy performance in the future-having paid for it ourselves. Has been relatively expensive but now the contractors are in oversupply and getting cheaper.
We have seen requirements for asbestos surveys from acquiring lawyers so bear this in mind if you own a building when asbestos was the building materials -it could delay proceedings if not removed.
Receiverships
Letting wise many retailers closed quite early on (hobby retailers) and badly run corporates. Adams, Woolsworths, Cardfair, MFI, Focus etc
The pre-pack receivership has hence seen many landlords simply losing their tenant which seems to start up again in the more profitable shops and hence the question is a multiple a good covenant compared to a local. Right now I would say no from a private investor aspect although once we get into prime shops this might affect value. The re-emergence now of the local retailer is very encouraging -landlords wants them, rents have dropped back a bit so those savvy enough are using the negotiating power to get some better deals and softer terms. It is generally more exciting now than the "clone" high streets and I guess some of the small exciting retailers are the multiples of tomorrow.
Commercial wise we have noticed some strain from some of the heavier engineering type co as home market and MOD contracts subside. On the other hand some exporters really quite happy due to weak pound.
Office demand outside the key towns is sporadic and fragmented at best.
The Dorset Economy
Some retailers and hoteliers have had a very good run over summer (the staycation) and the poor weather has forced holiday makers off the beaches into the shops. Despite this I think booking are good for next year so this important and major sector or economy is alive and kicking.
Rating
This is the big reval that has in effect already taken affect with figures published on line in October and coming into effect April 2010.
Empty Rates has been a rotten trick and will be abolished for properties up to £15,000RV next year
At the moment shops and offices 3 months industrials 6 months is all you get
Beginning to gear up for 2010 and information beginning to become available
Current rateable values based upon 2005 rental values and new rates coming into effect April 2010 based on market rentals in April 2008 or in the case of certain uses based on trading accounts eg licensed premises
Rates are collected by local authorities, nationally pooled and then redistributed-not all revenues stay in our area
More on this on businesslink.gov.uk or Communities and Government Website
Inland Revenue Valuation Offices-Valuation Office Agency (civil service) is tasked with the valuation exercise and estimates of of their assessment on rateable values will be published on line 1st October 2009 although can’t formally object until April 2010 www.voa.gov.uk/2010 From this if you think your rates are wrongly assessed from a valuation perspective eg it is incorrectly described call one of the local specialist rating surveyors/chartered surveyors or VO direct for an informal discussion.
Please watch the scam-sters. Anyone acting for fees upfront to reduce your rates should be regarded as suspect and was a major
What if rates go up? Impact will be reduced by transitional relief
What if my rates go down? Decrease reduced by transactional relief to pay for the above!
Transactional relief –methodology not fully decided upon yet so more to follow
Small rates relief may increase to £15,000 RV but most people rateable value will increase also so could take some out of relief-must remember to reapply for small business rates relief every 5 years.
There is also a rural rates relief scheme with slightly better "discounts" to those qualifying
All in all it is expected that bias will increase slightly to office based tenants with a very slight easing to industrial occupier at the other end of the occupier spectrum.
That's the theory ....Barty is off a lie down
The Pied Piper
30 June 2009
It is fantastic to see the town has children in its midst once again in Dorchester both at the skate park and at the pool. These have got to be the biggest preventers of childhood obesity this town has seen in years and you have to commend the skatepark committee and councils for these positive actions.
What is however apparent is the fact that for a County town there is no real future for these children, once they leave school-they leave town for good. This is in its self is healthy but the never come back except as coffin dodgers (Terry Wogan). With the effective demise of SWDRA's funding, a negative planning policy on existing and no new employment land allocation on decent flat land in the town leaves the town with an uncertain future...why is this?
What is however apparent is the fact that for a County town there is no real future for these children, once they leave school-they leave town for good. This is in its self is healthy but the never come back except as coffin dodgers (Terry Wogan). With the effective demise of SWDRA's funding, a negative planning policy on existing and no new employment land allocation on decent flat land in the town leaves the town with an uncertain future...why is this?
Boy in a Bubble
30 June 2009
Well here goes...
The demise of this deluded former genius is very sad but the facts are he stopped being a genuis along time ago and became really wierd instead...you thought I was talking about Michael Jackson?....G...B..
No it is not funny to mock this sad occasion...Jackson was truely a brilliant but sad,terrribly sad individual...neive..yes, bad probably not, and at the end of it another music star killed off by his own drug abuse? Who let who down?
The demise of this deluded former genius is very sad but the facts are he stopped being a genuis along time ago and became really wierd instead...you thought I was talking about Michael Jackson?....G...B..
No it is not funny to mock this sad occasion...Jackson was truely a brilliant but sad,terrribly sad individual...neive..yes, bad probably not, and at the end of it another music star killed off by his own drug abuse? Who let who down?
Hands in the trough
14 May 2009
MP's expenses. Country in a mess. What a bunch of shysters. Barty says why on earth do we bother with these people? Barty has seen it all -it is just a big party for an arrogant elite -sorry but power corrupts and although intentions are good at the grass roots, a few years of power and it is me, me , me! We're meant to be the ones with the power- the vote- "wield the power"(quote Green Day UK tour 2005)
Trillions
03 April 2009
Barty is intrigued, where did all the trillions come from? He was sure the country ran out of money sometime ago. How will it be paid back? Tax?Tax? Tax?
Janet and John
31 March 2009
Who needs to download adult movies when you have Terry Wogan with his Janet and John tales, surely that is all you need!!
Positive News
31 March 2009
Old Barty can get a bit negative sometimes but there are some real positives out there. Wellworths proves that Dorchester does have gutsy entrepreneurs in its midst and what is perhaps just as important is that its people are pulling together to support it rather than knock it. To get the British fighting spirit back on track again without the need of some other calamity is really good to see ....
Prohibition
16 March 2009
Barty is a little concerned that this politically correct nanny state will now move from banning alcohol (for the poor), chocolate and other confectionery items, as well as other things that are bad for us eg fish and chips, kebabs, KFC or anything that gives the masses a little bit of pleasure in these difficult times? Whilst we are about it lets ban tattoos (ugly), body piercing (could be be painful), kids Sunday football (could get hurt), people who are slightly overweight (take up too much space), David Attenborough (too intellectual), free press (too biased) but allow extremists to live in the country on benefits sponsoring jihad because ......they have human rights. Barty is beginning to feel like a rebellious school boy again!