Why you need to rethink Hemel Hempstead
Perhaps once viewed as the “departure lounge” of Hertfordshire, Hemel Hempstead has experienced a significant exodus of companies in recent years. However, signs of revitalisation within the town centre should make you rethink your opinion of Hemel Hempstead, according to Felix Sharman MRICS Associate in our Kings Langley Head Office.
The Hightrees Building on Midlands Road Hemel Hempstead has been earmarked for residential conversion, a location that has historically housed multiple office businesses and a site which Brasier Freeth (BF) has been closely involved with is set for conversion into apartments under permitted development rights. This shift mirrors broader trends in repurposing commercial properties to address housing shortages. Resulting in the relocation of three well-established Hemel Hempstead tenants.
Brasier Freeth proactively reached out to the occupiers within the Hightrees Building ahead of its redevelopment.
As a result:
The Department for Levelling Up – The UK Government department that handles housing, communities, local government, and levelling up policy in England, were secured by Brasier Freeth, leasing a 3,600 sq. ft. suite in The Forum, a building owned by Dacorum Borough Council. This relocation exemplifies the public sector’s commitment to maintaining a presence in local town centres.Rent reviews are clauses in commercial leases that allow landlords to adjust the rent at predetermined intervals. These reviews can take several forms:
Market Rent Reviews: The rent is adjusted to reflect the current market rate for similar properties, essentially reflecting what the landlord could get for the property if it were placed back on the market.
Fixed Increases: In this instance, the lease would specify predetermined rent increases at set intervals.
RPI/CPI-Linked Reviews: Rent is adjusted in line with the Retail Price Index (RPI) or Consumer Price Index (CPI), reflecting inflation.
Patient Billing, a business previously based at Hightrees, have formally committed to a futurewithin the KD Tower (Previously the Kodak Building, and a building they historically occupied), another key office building in Hemel Hempstead. Their relocation to the KD Tower indicates a commitment to staying within the town, suggesting local occupiers still see value in Hemel Hempstead’s central office locations despite the shifting office landscape.
A third tenant is set to take an additional 3,042 sq. ft. of office space in the KD Tower—watch this space!
A further example of tenant retention is the recent letting to Central London Community Healthcare NHS Trust – Brasier Freeth acting with both their Industrial and Office hat on, relocated CLCH NHS Trust, one of the largest community healthcare providers in the country, from Hemel One (Boundary Way), an office building site sold by BF for industrial re-development, to The Forum, CLCH NHS took the lower-ground floor suite of 1,238 sq.ft.
Redevelopment of commercial space signals both a challenge and an opportunity for both Hemel Hempstead and the wider regional market. While converting commercial buildings into residential units reflects economic and societal shifts, efforts by BF and other property stakeholders show an active approach to retaining and attracting businesses, ensuring local towns remain a viable option for commercial tenants even as the market evolves. A successful outcome for the local employment statistics and take-up figures for Hemel Hempstead!