Business
Commercial property demand falls but investment enquiries for industrial space up
OVERALL occupier demand for commercial property in Wales declines at all-sector level
Industrial space continues to outperform both retail and office sectors
Surveyors in Wales more optimistic on the 12-month outlook for capital values
Occupier demand for commercial property in Wales fell in Q2 after rising through the first quarter of the year according to the latest Royal Institution of Chartered Surveyors (RICS) Commercial Property Monitor as the industrial sector continues to outperform both office and retail.
A net balance of -17% of surveyors in Wales reported that occupier demand fell at all-sector level through the second quarter of the year. Looking at the subsectors, demand for both office and retail space was reported to have declined, with net balances of -25% and -27% respectively. Occupier demand for industrial space was noted to have fallen flat through Q2.
At all-sector level, a net balance of -19% of surveyors in Wales reported a fall in investment enquiries. Investment enquiries were up in the industrial sector, with a net balance of 6% of respondents noting an increase. A net balance of -36% of survey respondents noted a fall in demand from investors, and -27% reported a fall for office space.
Capital values are expected to fall in the short term, with a net balance of -13% anticipating a decline over the next three months at all sector level, down from 7% in Q1. Looking at the subsectors, industrial space is the only subsector in which capital values are expected to rise with a net balance of 27% anticipating an increase. A net balance of -23% of Welsh respondents expect a fall in retail space and -43% in office space.
On the 12-month horizon, surveyors in Wales appear more upbeat with a net balance of 13% of respondents anticipating a rise in capital value expectations over the next year at all-sector level. Surveyors in Wales anticipate that capital values for both office and industrial space will rise over the next year, 8% and 47% respectively whilst retail space is expected to fall (a net balance of -17%).
Chris Sutton of Sutton Consulting Ltd in Cardiff commented: “The industrial market remains strong, particularly along the M4 corridor with quoting rents of £9.00+psf on St Modwen Park, Newport for Grade A large units. On the opposite side of Newport, KLA has developed a 220,000 sq ft production / R&D facility at Imperial Park. Other bright spots are the data and energy sectors. In Cardiff, Grade A offices remain in demand as tenants readjust their occupational footprints to increased tech and new working practices.”
Haydn Thomas of Hutchings &| Thomas property consultants, in Newport added: “The South Wales commercial property market remains fairly static, with some sectors such as industrial space and roadside drive thru doing well. Lack of supply of front door owner occupier office space remains an issue especially from 3-5,000 sq ft. Demand for office space with larger floor plates remains low; Cardiff City may be bucking this trend slightly. Retails in city centres remains a problem, however, some smaller market towns seem to be doing well in terms of occupancy.”
Commenting on the UK picture, RICS Senior Economist, Tarrant Parsons, says: “Overall activity remains relatively subdued across the UK commercial property market, with conditions seen as generally flat in Q2. That said, respondents now feel the market is moving towards the early stages of an upturn following a challenging couple of years.
“The near-term path for monetary policy will be key to the outlook for CRE investment going forward, although hopes of an immediate easing in lending rates may be optimistic given still sticky services inflation (even if the headline rate has returned to target). Away from the cyclical picture, a strong structural trend that continues is the outperformance of prime office markets compared their struggling secondary counterparts. In particular, prime offices across London are seen delivering solid capital value and rental income returns over the coming twelve months.”
Business
Could Primark be coming to Haverfordwest? Major retailer in talks for former Wilko site
Council confirms advanced discussions as speculation grows over high street boost
HAVERFORDWEST could soon see a major high street revival, with a national retailer in advanced talks to take over the former Wilko building in the town centre.

Pembrokeshire County Council has confirmed that negotiations are ongoing, with a deal potentially just weeks — or even days — away.
Speaking to The Herald, Deputy Leader Cllr Paul Miller said the authority is in “detailed discussions with a major national retailer” over the prominent vacant unit.
However, he declined to name the business involved, citing commercial confidentiality.
Speculation grows
Despite the secrecy, speculation has been mounting locally that clothing giant Primark could be the retailer preparing to move into the site.
The size of the former Wilko store — one of the largest retail units in the town — has led many to believe only a handful of national chains would be able to occupy the space.
When asked directly whether Primark was involved, Cllr Miller did not confirm the claim, but also did not deny it.

Work already underway
The council has taken steps to prepare the building for a new tenant following Wilko’s collapse into administration.
This includes carrying out essential structural repairs, particularly to the roof, funded through a combination of council investment and an interest-free Welsh Government town centre loan.
Cllr Miller said the aim is to deliver a “blank canvas” for a new retailer, who would then invest further in fitting out the store.
He added that any incoming tenant would likely spend “millions” preparing the unit before opening.
Boost for town centre
The arrival of a major national retailer would represent a significant boost for Haverfordwest, which has faced challenges in recent years with declining footfall and the loss of several well-known stores.
The Wilko closure left a large gap in the town centre, both physically and economically, and securing a new anchor tenant is seen as key to revitalising the high street.
If confirmed, the move could increase visitor numbers, support surrounding businesses, and help restore confidence in the town’s retail future.

Deal ‘close’
Cllr Miller indicated that negotiations are at an advanced stage.
He said: “I’d like to think we’re talking weeks, not months — maybe even days, but these things can change.”
While no formal agreement has yet been announced, the timeline suggests a decision could be imminent.
What happens next
Until a deal is formally signed, the identity of the retailer remains unconfirmed.
However, with negotiations progressing and work underway on the building, expectations are growing that a major announcement could soon follow.
For now, all eyes remain on Haverfordwest — and on whether one of the UK’s biggest retail names is about to arrive.
We have contacted Primark for a comment.

Business
Rail investment ‘could unlock 40,000 jobs and £11bn for Wales’ says new report
RAILWAY stations across Wales could help unlock around 40,000 jobs and more than £11 billion for the economy by 2036, according to new research.
A report by Development Economics, published on Monday (Mar 23), highlights how rail infrastructure is acting as a major driver of growth, supporting housing, business development, and employment across the country.
The findings suggest that development within 800 metres of railway stations alone could generate more than 40,000 jobs and contribute £11.3 billion to the Welsh economy over the next decade.

Stations driving growth
The report identifies what it calls the “rail catalyst effect”, where stations attract investment and act as hubs for regeneration.
Recent examples across Wales and the South West show the impact of rail-linked development. Over the past five years, areas around nine stations, including Carmarthen, have delivered 3,500 new homes, 67,000 square metres of commercial space, and supported 4,500 jobs.
Proposed new stations, including Cardiff Parkway and Newport West, are expected to create around 900 permanent jobs and generate £64 million annually over the next ten years.
Economic case for investment
The report comes as Wales continues to face economic challenges, with inactivity rates standing at 25.6%, higher than the UK average of 21.6%.
Researchers say continued investment in rail infrastructure will be key to boosting regional economies and improving access to jobs and opportunities.
Mark Hopwood, Managing Director of Great Western Railway, said: “The findings of this report are clear. The railway, its stations, and the trains that serve them are powerful drivers of economic growth, community prosperity and regeneration.
“Across our network, development around the railway is delivering thousands of homes, new commercial space and thousands of jobs, generating hundreds of millions of pounds in economic value for the communities we serve.”
National impact
Across the wider Great Western Railway network, stations are projected to support 238,000 jobs and generate £14.25 billion in annual economic value by 2036.
Nationally, the report suggests railway stations could support more than one million permanent jobs and contribute £78.7 billion to local and regional economies.
Wider benefits
The report also highlights the social impact of rail, particularly for households without access to a car, estimated at around one in five in Wales.
With more than 1.6 billion passenger journeys made each year across the UK rail network, the study says improved connectivity is helping people access work, education, and services more easily.
Business
205-unit storage site at Pembrokeshire farm submitted to planners
A CALL to allow a Pembrokeshire farm to keep a storage facility for more than 200 caravans, boats, cars and farm machines as a form of diversification has been submitted to county planners.
In an application to Pembrokeshire County Council, Mr & Mrs Davies, through agent A.D Architectural Design Consultants Ltd, seek retrospective permission for a farm diversification scheme to accommodate the storage of caravans, boats, cars and farm machinery in four of eight agricultural sheds and on hard-standing concrete courtyards at Froghall Farm, Spittal.
The works were completed back in 2019.
A supporting statement accompanying the application said: “At present, four of the eight shed structures on the site form part of the caravan and boat storage scheme, with additional touring caravans stored externally on the concrete courtyards.”
It said the storage provision was split as follows: Shed 1 – farm workshop, and 30 caravans, motorhomes, boats & cars; shed 2 – 16 caravans; shed 3 – 28 caravans, motorhomes, boats & cars – 28; shed 8 – cubicle shed, 11 units of farm machines, motorhomes & caravans; courtyard storage of 120 touring caravans, for an overall storage of 205 units.
The statement added: “It would take place in an accessible location, would incorporate sustainable transport and accessibility principles and would not result in a detrimental impact on highway safety or in traffic exceeding the capacity of the highway network; access road is a no-through road with no increase in traffic due to the nature of development.
“There won’t be a constant stream/flow of traffic as the site’s used for storage. Our client offers a towing service to sites in and around Pembrokeshire, which is used by 45 per cent of their customers, who are unable or prefer not to tow themselves. This gives our client control over the flow of traffic.”
The application will be considered by county planners at a later date.
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