3rd October 2003
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Neil Grinnall, Chairman of the Grinnall Group and Richard Tomlinson of Humberts Chartered Surveyors are pictured outside the impressive entrance to the new office suites at K1 |
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A total of 25,000 sq ft of freehold and long-leasehold office suites under refurbishment in the commercial area of Worcester are seeing unprecedented demand from small professional companies already located in the cathedral city.
The landmark 1900's Kay & Company buildings in the heart of Worcester are being converted by the Neil Grinnall Group as a mixed-use scheme of office suites and loft style apartments sold on 125 year leases, or with the freehold interest. Whilst the K1 & K2 apartments are being sold well over a year in advance of completion, partners at professional firms such as Accountants, Solicitors and Independent Financial Advisors (IFA's) have been considering the long-term investment opportunity of owner-occupying the unique commercial space.
Neil Grinnall, Chairman of the Neil Grinnall Group commented: "Buy-to-let has rocketed in popularity for residential property sales in the past five years, coinciding with the steady drop in interest rates. However, in the past 18 months rental yields on commercial properties have exceeded comparable residential yields and demand for freehold and long leasehold office space has never been higher, attracting institutional investors through to sole traders.
"Apart from employees, rent is the biggest fixed cost a company will face and Small to Medium sized Enterprises (SME's) are increasingly looking for a more cost-effective solution. Having identified this as a growing trend, we took the decision to refurbish a large section of the frontage of the Kay's buildings as high specification office suites and we are marketing them on a similar basis to the apartments. The mixed-tenure will not only increase the longevity of the scheme, but we believe it will open up a whole new sector of the property market in Worcester ."
The seven individual office suites situated within K1 and K2 will benefit from impressive entrances from The Tything - one of Worcester 's main commercial streets. The high specification is amongst the best currently available in the Worcester area and features climate control, Category II lighting and suspended ceilings. Office suites range in size from 1,593 sq ft (148 sq m) to 4,553 sq ft (423 sq m).
Richard Tomlinson of Humberts Chartered Surveyors said: " Worcester is experiencing a surge in popularity as both a place to live and work due to its historical character, prime location and enviable infrastructure. More companies are choosing to relocate to smaller cities and towns outside of the South East because of the higher quality of living that can be enjoyed by employees and the lower overheads, such as cheaper office space. Whilst some organisations are looking to relocate to Worcester , small local firms are taking steps against being priced out of the market, which include buying their own office premises as part of a long-term investment plan.
"What we have seen by the release of the K1 and K2 office suites is that demand is way in excess of supply. Long-leasehold and freehold offices are very scarce in Worcester and whilst the owners of professional firms may not be able to embark on the decision to invest in such a venture as hastily as a buy-to-let apartment, we are expecting a sale for a number of the suites to be agreed off-plan."
The K1 and K2 conversions will provide character rich office suites with original windows granting high levels of natural light. On-site car-parking is a major asset to any prospective occupier, however, Worcester Forgate Street Station is approximately 200 metres from the scheme. Unsurprisingly, interest to date from professional firms is due not only to the features of the building, but also because of the high profile address that can be enjoyed by the occupiers of the modestly sized offices.
Neil Grinnall continued: "The £23 million mixed-use conversion and restoration programme at K1 and K2 is playing a huge role in the continued regeneration of central Worcester . The office suites here may not bring significant jobs to the area, but they are set to play a crucial part in retaining an eclectic mix of niche companies within the area. Whilst the apartment boom embraces the city centre, we have not forgotten that Kay's Catalogue was one of Worcester 's biggest employers and it very rewarding that local companies are so interested in taking the opportunity to occupy the now redundant landmark headquarters."
The office suites, 38 apartments and nine townhouses at K1 and K2 will be available for occupation in 2004. Viewings for the office space can be arranged through Sole Agents Humberts by contacting Richard Tomlinson on 01905 720 104.
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Press release drafted by Core Marketing, 0121 643 8151.
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