How did Warwickshire’s commercial market fare in 2024, and what will 2025 have in store?

Against a somewhat challenging economic and political climate, we catch up with Jon Blood of Wareing & Company to discuss the how the commercial property market fared in Warwickshire in 2024, his predictions for 2025 and most importantly, what belongs in a Christmas dinner…

 

How did you find the last year?

As we wrap up 2024, it’s fair to say that Warwickshire’s commercial property market has been a lot busier than in 2023. We didn’t kick off the year with huge amounts of optimism, though. The interest rate hikes from 2023 had left many investors feeling cautious, and with a General Election looming, a lot of people were waiting to see how things panned out.

But the election was called earlier than expected, and by summer, the market really started to pick up speed. Retail, in particular, came alive, with many deals being completed in the latter half of the year.

 

What were the key economic challenges?

The year wasn’t without its hurdles. Early on, the impact of those 2023 interest rate hikes still lingered, and investor confidence was relatively low.

Interest rates eventually stabilised, which helped, but the economic backdrop still had its tricky moments. The government’s Budget could have been better for smaller businesses with the rise in National Insurance Contributions impacting their spending, but its overall commitment to building is a positive sign.

 

And what about sector-specific challenges?

Different sectors had their own issues to navigate outside of the overall economic outlook. In retail, there was a bit of a slow start before rents finally rebased after the pandemic, which paved the way for the sector’s resurgence later in the year.

The industrial market had a steady year. Warwickshire’s excellent location and transport links kept things ticking along nicely, even if it didn’t see the same surge as retail.

The office market was less active. With hybrid working now firmly the norm, landlords and businesses were understandably cautious about investing in office space. ESG (environmental, social, and governance) considerations also played a big role, making it clear that the office sector is still figuring out its place in a post-pandemic world.

 

What positives did you take from this year?

Plenty, actually! Retail had a fantastic comeback in the second half of the year. Seeing brands like Jo Malone London and Gail’s Bakery choose to set up shops on Parade and Regent Street respectively in Leamington Spa was a real boost for the area. It’s always great to see big names putting their confidence in the region.

The industrial sector also had its wins. Bracco, a global medical firm, took space at Titan Business Centre in Warwick, showing how businesses are still drawn to Warwickshire’s fantastic connectivity.

Even the office market, with all its uncertainty, delivered some exciting moments. One standout was letting around 20,000 sq ft at Imperial Court in Leamington to Lighthouse Games. It’s one of the town’s most prominent office spaces, so seeing a company of their calibre move in was a real highlight.

 

What are your expectations for 2025?

Looking ahead, there’s a lot to feel optimistic about. Flexible office spaces are likely to become even more popular, with companies leaning into the ‘hub’ model — places where staff can pop in and out as needed. Flexibility is king these days, and businesses are happy to pay a little extra for high-quality spaces that offer just that.

If the Bank of England keeps interest rates steady — or, better yet, brings them down as some are predicting — then we could see even more activity across the board. The government’s focus on housebuilding and growth could also help boost confidence, but investors will want to see tangible progress, not just promises.

Quality will continue to be the driving force. Businesses and investors have become much more discerning, and sub-par spaces just aren’t cutting it anymore. As we step into 2025, we’re ready to help keep Warwickshire’s commercial property market moving forward and thriving.

 

And finally – what is your favourite part of Christmas dinner?

I always look forward to a delicious Christmas dinner, but the food I absolutely must have on my plate are pigs in blankets. Chipolatas wrapped in bacon – you can’t beat it!

I hope everyone enjoys tucking into their own Christmas meal and having a well-deserved break at the end of another busy year! From myself and everyone at Wareing & Company, have a Merry Christmas and a Happy New Year!

 

Handelsbanken moves to 3,000 sq ft Leamington office after Wareing & Co secure deal

A major bank is set to open a premier office location in Leamington Spa as part of its plans for growth in the area after Wareing & Company secured a deal.

Local relationship bank Handelsbanken will move to a new 3,000 sq ft office on the second floor of Olympus House from its current premises in the town after agreeing a 10-year sub-lease with leading law firm Wright Hassall.

Jonathan Blood, director at Wareing & Company, acted on the deal on behalf of Handelsbanken.

He said: “We have worked with Wright Hassall for a number of years now to help complete our own transactions, so it’s fitting that we secured the deal for Handelsbanken to move into Olympus House.

“The space and amenities fitted Handelsbanken requirement’s perfectly, and we hope the team enjoy settling into their new office.”

Handelsbanken is a relationship bank which offers banking and financial support for customers ranging from individuals to large corporate and financial institutions.

Its Leamington Spa branch, which serves its south Warwickshire customer base, was previously based at Myton House in the town centre for a decade, with all 13 staff due to relocate to Olympus House.

Dani Coe, Branch Manager for Handelsbanken Leamington Spa, said: “Moving to Olympus House is a natural step to accommodate our expanding team of relationship bankers in order to support even more customers in the local community.

“It not only provides a fantastic location for us with excellent parking for our customers, but almost double the office space as our previous site, alongside a welcoming open-plan office space which allows our team to be all on one floor.

“We are very thankful to Wright Hassall and Wareing & Co for helping with our move.”

Phil Wilding, Managing Partner at Wright Hassall, said: “I’m really pleased to welcome Handelsbanken to Olympus House, which has been our proud home since 2007.

“Modern offices look very different from when we first moved in, and in recent years we have seen companies across the world – including Wright Hassall – embrace hybrid working, with most of our 240 staff able to work in a hybrid manner.

“This working style has enabled us to consolidate the office space that we need as a business, and use our premises differently. It has meant we have been able to release some of our surplus space to other local businesses, which ties in with our aspirations to support local businesses and enable their growth and success.

“We still have plenty of office capacity for all of our staff, including space for growth, which is very much on our agenda.

“Handelsbanken is a well-respected name within the banking sector and we are delighted to welcome another local business into our office space.”