PROPERTY FOCUS: The Interview – Carl Smith
THE BUSINESS DESK.com
15 September 2009
CARL Smith is a director of WSB property consultants, a full service commercial property consultancy established earlier this year.
Mr Smith heads the valuation and landlord and tenant department of the Leeds-based business, working closely with his fellow directors. He has nine years industry experience having worked for two of the largest national chartered surveying practices in the UK, Lambert Smith Hampton and Christie & Co, undertaking valuations of offices, industrial, retail, licensed and leisure properties.
Valuations are undertaken for a diverse range of reasons, including loan security, company or financial accounts, independent expert, pensions, marital disputes and taxation.
Mr Smith has advised a wide range of clients from owner occupiers, high net worth individuals and national financial institutions.
1. What are your views of the current state of the commercial property and property development markets?
"I am of the opinion that confidence in the commercial property market is gradually starting to return. There have already been several significant investment deals completed this year, in particular 1 Park Row, Leeds, acquired by Evans Property Group.
"However there is still along way to go with an increasing volume of vacant accommodation across all sectors and take up substantially below previous levels.
"Timing of recovery is always difficult to predict, the speed of the onset of the current financial crisis surprised many, and some investors still believe that capital values may fall further.
"However, WSB is seeing renewed confidence in the investment market with asking prices being achieved and in some cases
exceeded, as funds and other property companies manage to re negotiate their debt finance. Whilst the market saw some fire sales by funds releasing equity, in 2009 a number of property companies have now consolidated and are now starting to acquire as they see some stability returning to the market.
"If this trend continues, those who wait much longer may end up missing out on some well priced acquisition opportunities.
"With regard to property development, it is encouraging to see some new development and extensive refurbishment projects commencing.
"In the letting market, this is an excellent time to relocate, with good tenant incentives being offered around the city. The recession will create a need for firms to reassess their accommodation requirements, be that downsizing or those seeking to expand.
"WSB are working on behalf of tenants looking two to three years in advance of their lease expiry to see what options are available at this time. "With regard to larger development schemes in Leeds, the city needs to maintain its image as the principal financial and employment centre in the North of England. I expect that local and central government assistance will be required to help kick start some projects, but it is vital to maintain Leeds image and reputation as a modern thriving city."
2. What key challenges and pieces of legislation do you think will most affect your sector over the coming months?
"Availability of finance will probably remain the key challenge to the majority of landlords, tenants and developers over the next 12 months. "Pre-lets or pre-sales are harder to achieve and taking longer to complete, so hindering developments from commencing and banks to release funding. "Business rates is still very topical, however personally I think that the empty rates liability is here to stay at least for the medium term despite the obvious negative implications for the property sector."
3. Why do you think Yorkshire is a good place to do business?
"Yorkshire has an excellent demographic profile, with a good local population providing a hard working labour force. Leeds has two well respected universities, is regarded as England's second financial centre outside of London and provides a wide range of UK and regional headquarters. "Personally, I most enjoy living close to an important city whilst being able to live in the countryside, close to the Yorkshire Dales, which is important for many people."
4. What is your favourite building/development in Yorkshire and why? "Headingley Carnegie. As a keen sports fan I love visiting Headingley Carnegie for either rugby or cricket. I particularity like the recent and proposed regeneration of the ground that has included a good mix of educational and corporate facilitates.
"This is an excellent way of maximising the stadiums use outside of sporting events and a great way of financing and improving Yorkshire's sporting representation. "Leeds has developed a reputation for having many similar red brick buildings, however Leeds also has many stunning new buildings and some architectural gems. Princess Exchange is an excellent modern office development, and in contrast The Calls and Park Square provide some very attractive historic buildings.
5. If you could improve anything in the region, what would it be?
"Transport into and around Leeds, especially access to the northern suburbs."
6. What barriers have you had to overcome during your career and how have you overcome them?
"Financing myself through my post graduate course and getting Chartered. Hard work, gaining as much experience as I did during this period allowed me to quickly push on in the commercial world once I became MRICS.
"Having lived and worked in the hospitality industry, personally running and operating public houses and hotels I gained a great deal of experience simply dealing with people and understanding how the licensed industry works from the operators point of view. This provides a greater understanding of the business and has helped when advising on licensed property transactions and valuations."
7. What was your first job and how did you enter your current line of work?
"Washing plates at a pub in Skipton, not the most glamorous job but it paid well at the time! "I had been involved with many property transactions prior to becoming a surveyor through various family interests, be that buying or selling pubs or hotels or renovating residential houses. "I also played rugby with several surveyors who always spoke very positively about their job and how much they enjoyed it, which is paramount when choosing a career."
8. What do you most enjoy about your job?
"The wide variety of work which WSB is currently advising on. As a new company, we are very focussed on gaining new instructions, meeting new clients and advising existing clients on how the market is changing and how we can add value to their properties. Gaining a new instruction for your own company is very rewarding. "Everyday there is a great buzz and energy in the office. Robin Beagley and Duncan Senior provide one of the most experienced office agency teams in Leeds, and with David Watson heading investment and Dave Smith leading industrial agency and myself in valuation and landlord and tenant, at wsb we can help clients by working creatively ensuring they get the most from their property assets."
9. What is the best piece of advice you've ever been given?
"Work hard."
10. And the worst?
"This summer will be hot and dry."
