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Follow on Google News | Kings & Co make analysis of changing property usage in NorwichKings & Co has examined the effects of social & economic trends on the property market in Norwich. Paying particular attention to the city centre itself, Kings & Co have been able to highlight and support the drivers for change.
By: Sally White For the city centre the occupancy rate is going the other way, this poses several commercial challenges... Can commercial landlords continue to rely on retailers being able to afford their rents, rents which are premium priced based on location? Certainly the trend seems to be that of those shops vacated, not all are re-let and if they are then often not at the same rental value as before. The tangible advantages of moving into shared occupancy within a shopping mall or retail park complex, is that overheads are often much lower and in a climate where internet retail is rapidly increasing and reduction of overhead is becoming a must for survival. Aside from business and commercial aspects there's also a social trend developing, the public do still want to be in the city centre and that feeling of being at the centre of a collective hub is all-pervasive and unlikely to ever change. The retail industry is now not one of those drivers, it's likely that in future you can expect the attractors for the city to be ever more the service and entertainment industry rather than things retail related. For example, the rise of the coffee shop society and an increase in restaurant numbers are two examples we can observe today. To such extent that the high street is now attracting increasing overseas investment in the guise of new food chains and with that generating increasingly fierce competition. We can also expect a growth in more recreational and entertainment based facilities in future. It is this trend of change from retail to social entertainment and a service industry which is most interesting and offers some respite to commercial property owners and also to the Norwich lettings agents who support those owners. See http://www.kingsandco.com/ The unknown economic factor is where the income stream will come from to fund this social change. Will the closure of retail and the jobs associated with that be directly be replaced by a growing service economy? Or are we looking at an employment deficit where people must search outside of the city for work so as to be able to afford to live in it? It's likely that the demographic of the city centre will be impacted by the availability of work, with likelihood of the middle-aged and to some extent middle-income population moving out of the city and travelling in for recreation as and when. This also suggests a trend towards younger people, working temporarily in the service economy or perhaps while studying, and on the other end of the spectrum those on high enough incomes to afford the premiums of central location. This kind of environment also suggests the birth of more small start-up companies often comprising single individuals, all eking out a trade and the means to stay in their desired surroundings. The internet is certainly an agent of change in terms of helping migrate retail (as we know it) further out from our towns and city centres. However it can also be a benefit to supporting the growth of a new breed of more portable web-based businesses which don't rely on large overheads and physical space. These type of businesses can have a very positive impact in both the residential and commercial property economies. In changing times there is always opportunity and savvy property developers are recognising this, spotting opportunity to either re-invent commercial property or turn it into character residential property for letting. For example empty sole trader shops can make a great residential home to let or tired retail premises can be converted into multiple offices to launch new entrepreneurial businesses. See http://www.kingsandco.com/ In conclusion it's clear to see that the retail industry has been changing and still is changing for some time. In today's uncertain economic climate and with the growth of internet retail this process can only evolve quicker. The result is an almost Darwinian mode for the high street, they need to move to lower overheads, shared infrastructures, logistic services and possibly even pooled purchases to compete. It's not surprising that smart money is investing in the types of commercial property development that will enable this. For the city centre the future is more social, more service orientated and marketed into by this economy. The city centre will remain a desirable place to live with the residential property market seeing no real decline due to migrating retail and from a business perspective, the social connectivity benefits of the city centre help to provide the hotbed for new "infrastructure free" businesses. Watch this space! Kings & Co Norwich is working hand-in-hand with several property developers and investors in Norfolk to assist with this evolution. Norwich is a fine city and with efficient management of the property that constructs it, we can rejuvenate our environment both materially and socially. See http://www.kingsandco.com/ Come and visit us at Kings & Co Lettings in Norwich for further discussion on the property market trends. http://www.kingsandco.com http://www.youtube.com/ # # # Lettings and Property Management agent in Norwich. Servicing landlords for full management and tenant find. Kings & Co are a family business established since 1995. End
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