Boultbee Developments Limited has signed two new occupiers in just seven days to its Nechells Place Business Units development in Birmingham.
According to Steven Jaggers, from selling agents King Sturge, the success is in part down to a new rent to buy scheme.
He said: “These two deals demonstrate that despite the economic difficulties faced at the moment for everyone, landlords who offer flexibility and imagination on their terms and purchase options can buck the trend.
“The rent to buy option is great for occupiers because it gives them the time to take up the new premises they need and commit to purchase when they are ready in the longer term when the economy recovers.
“The five-year lease with option to purchase in the first two years reassures businesses and ensures their finances are kept in good order.”
Alan Gordon, whose Electrical Contractors business, Lammart employs 12 people is one of the new occupiers, said: “No one doubts that there is a recession, but the niche market we are in means our future growth is potentially very exciting. We concentrate on renewable energy installations such as wind turbines and solar panels for government schemes and know our business model is in line with future environmental needs and national policy.
"Our move here works on a number of levels. We can create our own bespoke unit as it is a blank canvass, we have more parking for customers and the first impression is excellent because the development is landscaped.”
Lammart has agreed a five-year lease on a 1,843 sq ft unit with an option to break after two years at an annual rent of £7,500. There is also an option to purchase at a cost of £160,000 after the first two years.
Car diagnostics company, Maj Diagnostics is the other new occupier and has agreed the purchase of the freehold at a cost of £145,000 for their 1,700 sq ft unit. They too are in a niche market and needed a more suitable unit than their current one in Bordesley Green.
“We will be fitting out a purpose built workshop and will benefit from additional parking,” said owner, Majid Hussain. “The fact we are still in the heart of the city also helps,”
The units are still a rare commodity in Birmingham said Carl Durrant, industrial team partner at King Sturge: “The city has been in real need of new, freehold, small shell units for many years. They suit the profile of so many local businesses.”
Roger James, Development Director for Boultbee, added: “Nechells Place has a business park feel, providing 24 hour access, seven days a week.
“This is the pilot development of a roll out of similar freehold business unit schemes for Boultbee in the region.”