Business
Occupier demand for commercial property in Wales rises for first time in two years
OCCUPIER demand for commercial property in Wales rose for the first time in almost two years according to the latest Royal Institution of Chartered Surveyors (RICS) Commercial Property Monitor, as demand for industrial space remained strong and demand for retail space turned positive for the first time since well before the pandemic.
A net balance of 8% of surveyors in Wales reported that occupier demand at all-sector level had risen through Q1 2024. Broken down by subsector, demand for both industrial and retail space rose (net balances of 31% and 9% respectively), with retail having risen for the first time since 2017. A net balance of -15% of Welsh respondents reported that demand for office space had fallen.
Looking at overall investor demand, a net balance of -13% of respondents in Wales reported a fall. Whilst this balance remains in negative territory, it is an improvement on -32% in the previous quarter due to a less negative picture for retail. Looking at the subsectors, investor enquiries for industrial space fell flat, whilst both office and rental space saw declines, with net balances of -31% and -9% respectively. The later was an improvement from -47% in the previous quarter.
Regarding capital value expectations, on the three-month outlook, a net balance of 7% of respondents expect capital values to rise over the next quarter, the highest this balance has been since mid-2019. A net balance of 38% of respondents anticipate that capital values for industrial space will rise over the next three months, whilst net balances for both retail (-9%) and office (-8%) space remain more subdued. On the twelve-month picture, surveyors in Wales anticipate that capital values will fall flat over the next year.
With regard to rental expectations, a net balance of 4% of surveyors in Wales expects rents to rise over the next quarter. A net balance of 46% of Welsh respondents anticipates that rents will rise for industrial space, whilst rents for office and retail space are expected to fall (net balances of -8% and -27% respectively). On a 12-month horizon, surveyors anticipate that rents will fall at all-sector level with -5% of respondents expecting a decline.
Chris Sutton of Sutton Consulting Ltd in Cardiff commented: “Industrial rents continue to strengthen for Grade A new-build floorspace at St Modwen Park, Newport with £8.75 per sq. ft achieved and quoting rents now over £9.00 per sq. ft. Only three years ago, rents on the same estate were £6.50 per sq. ft. The office market continues to adapt to changing working patterns with occupiers shifting to higher quality floorspace, with a focus upon Cardiff city centre. The lack of shovel-ready employment sites along the M4 corridor is a constraint on the economy.”
Commenting on the UK picture, RICS Senior Economist, Tarrant Parsons, said: “Although sentiment remains relatively cautious regarding the near-term outlook across the UK commercial property market, the latest survey results do show some signs of recovery coming through. For one, occupier demand growth now appears to be gaining traction slightly, supported by the broader economy seemingly returning to growth following a brief recession late last year. Moreover, the prospect of interest rate cuts later this year have already led to an easing in credit conditions across the sector, marking the first such improvement in our feedback since 2021.
This should begin to support investment market activity as the year wears on, which, in turn, will likely see a more stable picture emerge for headline capital values.”
Business
Salon plans for Haverfordwest car valet site approved
RETROSPECTIVE plans to change a Pembrokeshire car sales/valet area to include a barber shop and tanning salon have been given the go-ahead.
In an application to Pembrokeshire County Council, Zizo Barbers & Affordable Cars, of Cambrian Place, Haverfordwest sought permission for the change of use of previously granted valet and car sales area, the works completed in 2024.
A supporting statement through agent Hayston Developments & Planning Ltd said the former commercial garage business has been operating in several guises from the premises for many years and has included petrol sales, motor servicing and repairs, MoTs, vehicle valeting, car sales and customer parking.
This followed on from a 2011 permission for the partial demolition of the original commercial garage, with a later approval for the site refurbishment to provide a workshop, valeting and offices for the existing car sales.
A supporting statement said: “The proposed update to a change of use involves the replacement of a car valeting service, which took place under a covered area at the rear of the site by a wash and valet operation – and restricting this service to those cars being sold at the Cambrian Place site. The use of a former office / store as a barber shop.
“The use of the former customer waiting area as a tanning salon including a new moveable timber shed for use as a meet and greet facility and as a car sales office. Provision of a communal parking area. Whilst retaining the principal use of the site for the sale of used cars.
“It is therefore suggested that the proposal will reduce both the elements of noise and the generation of dust whilst improving air quality as substantially fewer cars being power washed and valeted as well as the visual impact of these activities in this very public location – and with adjacent residential properties.”
Haverfordwest Town Council had objected to the scheme on highway safety grounds, but an officer report recommending approval said: “Highways colleagues have advised that the mixed use at the site is not likely to generate a significant number of trips that would lead to congestion and/or road safety issues due to the hours of operation are suggestive of visitors in the non-peak hours over the course of the day.
“In addition, highways colleagues have confirmed recorded accident history is negligible at the site, with one accident in 2023 at the nearby junction as a result of a rear shunt.”
It also said that, as the site lies adjacent to the A40(T) Welsh Government as a highway authority were consulted on the application, but has not not issued a direction in respect of this application.
One letter of objection had also raised issues of traffic and highway safety, chemical and detergent waste from the site and occasional activity after 5pm.
The report said the cessation of the valeting/washing use will reduce water usage at the site and any activity outside normal hours was an enforcement matter.
The application was conditionally approved by officers.
Business
Community council objections to Tenby Lidl store scheme
PLANS for a new store on the edge of Tenby by retail giant Lidl, which has seen objections from the local community council, are likely to be heard next year.
In an application recently lodged with Pembrokeshire County Council back in October, Lidl GB Ltd, through agent CarneySweeney, seeks permission for a new 1,969sqm store on land at Park House Court, Narberth Road, New Hedges/Tenby, to the north of the Park Court Nursing Home.
The proposals for the latest specification Lidl store, which includes 103 parking spaces, would create 40 jobs, the applicants say.
The application follows draft proposals submitted in 2024 and public consultations on the scheme, with a leaflet drop delivered to 8,605 local properties; an information website, with online feedback form; and a public exhibition, held last December at the De Valence Pavillion in Tenby, with a follow-up community event held at New Hedges Village Hall, close to the site, publicised through an additional postcard issued to 2,060 properties.

Some 1,365 responses have been received, with 89 per cent of respondents expressing support for the proposals, the applicants say.
A supporting statement says: “Lidl is now exceptionally well established in the UK with the Company operating c.980 stores from sites and premises both within and outside town centres. Its market share continues to increase substantially, and the company is expanding its store network considerably. The UK operational model is based firmly on the success of Lidl’s operations abroad with more than 10,800 stores trading across Europe.
It adds: “The granting of planning permission for the erection of a new Lidl food store would increase the retail offer and boost the local economy. The new Lidl food store would create up to 40 employment opportunities for people of all ages and backgrounds, providing opportunities for training and career development. This in turn will create an upward spiral of economic benefits.”
Local community council St Mary Out Liberty Community Council has formally objected to the scheme, saying that, while it supports the scheme for a Lidl store in principle, recognising “the economic benefits a new retail store could bring,” it says the proposed location “is unsuitable, conflicts with planning policy, and cannot be supported in its current form”.
Its objections add: “The A478 is heavily congested in peak tourist months. A supermarket would worsen congestion, increase turning movements, and heighten risks to pedestrians, cyclists, and emergency access.”
It also raises concerns on the potential impact through “noise, lighting, traffic disturbance, and loss of quiet amenity” on a neighbouring residential care home.
An initial assessment by Pembrokeshire County Council, highlighted concerns about the visual impact, with the authority’s landscape officer commenting that the store would introduce “an intense urban function into an otherwise rural context”.
The report added: “It is not considered to be compatible with the character of the site and the area within which it is located; and furthermore, will lead to a harmful visual impact on the setting of the National Park.”
The application will be considered by county planners at a later date.
Business
Senedd approves £116m transitional relief for business rates
BUSINESSES facing sharp hikes in tax bills after the 2026 revaluation will see increases phased in over two years after the Senedd backed a new transitional relief scheme.
Senedd Members unanimously approved regulations to help businesses which face significant rises in non-domestic rates bills after a revaluation taking effect in April 2026.
The Welsh Government estimates the transitional relief will support 25,000 ratepayers at a cost of £77m in 2026/27 and £39m in 2027/28. The partial relief covers 67% of the increase in the first year and 34% in the second.
Mark Drakeford, Wales’ finance secretary, stressed the £116m scheme comes on top of permanent rate reliefs which are currently worth £250m a year. He said ratepayers for two-thirds of properties will pay no bill at all or receive some level of relief.
The former First Minister told the Senedd: “In providing this transitional relief scheme, we are closely replicating the scheme of relief we provided following the 2023 revaluation – supporting all areas of the tax base in a consistent and straightforward manner.”
The Conservatives’ Sam Rowlands expressed his party’s support for the transitional relief scheme which will help ratepayers facing sharp increases after the 2026 revaluation.

He said: “We are grateful that the Welsh Government has at least brought forward a scheme that will soften the immediate impact for thousands of Welsh businesses.
“We also understand that if these regulations are not approved or supported… this relief scheme will not be in existence. Many businesses across Wales would face steep increases with no protection at all and that is certainly not an outcome we would want.”
But the shadow finance secretary warned businesses up and down Wales are worried about the increase in rates that they are liable to pay.
Advocating scrapping rates for all small businesses in Wales, Mr Rowlands said: “We’ve heard first-hand from many of those in the hospitality and leisure sector, some of whom are facing increases of over 100% in the tax rates they are expected to pay.”
Responding as the Senedd signed off on the scheme on December 16, Prof Drakeford said the Welsh Government had to wait for the UK budget to know if funding was available. As a result of the time constraints, the regulations were not subject to formal consultation.
Prof Drakeford agreed with Mr Rowlands that voting against the regulations would not improve support, only eliminate the transitional relief package before the Senedd.

Earlier in Tuesday’s Senedd proceedings, former Tory group leader Paul Davies warned Welsh businesses have already been hit with some of the highest business rates in the UK.
He said: “The latest business rates revaluation has meant that some businesses are now facing rises of several hundred per cent compared with previous assessments…
“Whilst I appreciate that a transitional relief scheme will help some businesses manage these changes, the reality is that for many businesses it’s not enough and some businesses will be forced into a position where they will have to close.”
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