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Commercial property demand falls but investment enquiries for industrial space up

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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

Business event shares key insights in renewable energy, innovation, and leadership

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BUSINESSPEOPLE across Wales have gained exclusive behind-the-scenes access to JCB Transmissions to learn about its new hydrogen generator technology, workplace culture, and future developments.

Organised by the Institute of Directors (IoD) North Wales, attendees toured the facility in Wrexham and received expert insight into the company’s role in manufacturing components for carbon efficient machinery from JCB operations director Craig Weeks.

Guests were equipped with professional leadership knowledge as Craig shared his career journey with the multinational manufacturing business, as well as highlighting key decisions made to increase business growth and efficiency.

He also revealed practical ways the firm invests in its workforce by utilising training opportunities provided by the North East Wales Skills Academy (NEWSA) and Gatewen Training Services.

David Roberts, chair of North Wales IoD, believes the event spotlighted JCB’s innovation and contribution toward Wales’ net zero by 2050 target.

He said: “From its latest hydrogen generator technology to its production of gearboxes, axles, and transmissions systems, it’s evident that JCB Transmissions is paving the way as a leader in creative, cutting-edge renewable technology.

“Moreover, I think the experience gave guests the chance to understand ways in which they could make more informed investments and the long-term benefits of upskilling members of their respective teams.

“Seeing business leaders and directors attend from across Wales was also very encouraging and I hope they feel more empowered to excel in their industries.”

Speaking about Craig, an IoD North Wales Skills Development award winner, David continued: “I think there is a lot to learn from his leadership.

“His careful, considered allocation of company resources, alongside his career path from axle and gearbox technician to operations director, demonstrates great creative direction and tenacity.

“Overall, building a supportive and welcoming culture in any firm is essential for longevity and it’s something I think JCB Transmissions showcased to all attendees.”

To become an IoD volunteer, contact David Roberts on 07899 910 293.

For more information and to view upcoming events on the IoD in North Wales, visit www.iod.com/events-community/regions/wales

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Business

Air quality at historic Pembrokeshire mill ‘cleanest ever recorded in UK’

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THE AIR around a historic mill on the Bluestone National Park Resort estate has been found to be cleaner than any site currently monitored by the UK Government.

Black Pool Mill, an early 19th-century water mill that now houses a restaurant near Canaston Woods, has been recording air quality since 2024 as part of Bluestone’s ongoing commitment to sustainability.

According to the data, the mean average of PM2.5 – fine particulate matter less than 2.5 micrometres in diameter – at the site is just three micrograms per cubic metre. That is significantly below legal limits in Wales (25) and England (20), and cleaner than any figures recorded at official UK monitoring sites.

PM2.5 particles can come from aerosols, vehicle fumes and industrial emissions, as well as natural sources such as dust and pollen. The health impacts of long-term exposure to these particles are well documented, contributing to respiratory and cardiovascular issues.

Professor Paul Lewis, Chief Scientific Officer at Health and Wellbeing 360 and Clean Air Programme Regional Champion for Wales, is leading the research. He said: “Black Pool Mill is clearly way below the legal thresholds. South Pembrokeshire benefits from westerly sea winds and very low levels of man-made pollution. The mill is surrounded by ancient woodland, in a sheltered estuary valley, and sits within Bluestone’s car-free resort – all of which contribute to these outstanding results.”

Environmental scientist Marten Lewis, director of sustainability at Bluestone, said: “We’re delighted but not surprised. This confirms that our efforts to protect the environment and put the wellbeing of our guests and staff first are paying off. Following our recent King’s Award for Enterprise in sustainable development, this shows why Bluestone stands out as a model for regenerative tourism.”

Mr Lewis added that Bluestone is now looking to trial new low-particulate cleaning products and expand monitoring to indoor areas including lodges, the resort pub, and children’s play facilities.

Black Pool Mill reopened in 2023 following extensive restoration and now forms part of Bluestone’s visitor experience, offering seasonal food in a historic riverside setting.

Photo caption:
Clean air: Black Pool Mill sits in ancient woodland near the River Cleddau (Pic: Bluestone)

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Business

Specsavers launches first at-home hearing care service in Wales

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SPECSAVERS has launched a new audiology service in Wales, supporting people across South East and South West Wales, from Fishguard to Caerphilly, who are unable to visit their high street stores.

The new team of hearing experts will provide free home hearing checks to those who cannot leave their homes unaccompanied. The service is being led by audiology directors Andrew Williams and Matthew Maguire, who have joined forces with the existing optics Home Visits team to expand services beyond eye care.

It offers the full range of hearing services available at Specsavers stores – from hearing checks and wax removal to hearing aid fittings.

Audiology director, Andrew Williams, comments: ‘We’re thrilled to bring this service to Wales, helping people who might otherwise struggle to access quality hearing care – whether due to mobility issues, mental health or the challenges of old age.

‘To be the first Specsavers team in Wales to deliver this type of service is a key milestone and one we’re proud to be leading. We’re looking forward to getting to know the local community and bringing essential support to those who need it most, right where they feel safest and most comfortable.’

Customer service director, Alison Warren, who has led the optics team since it first launched 11 years ago, adds: ‘After months of planning, it’s fantastic to see this new service up and running. The impact of at-home appointments goes far beyond clinical care. For many of our customers, especially those living alone, we might be the only face they see that week.

‘It’s not just about hearing aids or eye tests, it’s about connection, dignity and taking the time to really be there for someone.

‘Having Andrew and Matthew join the team means we can bring that same level of care to people’s hearing needs too and that makes a real difference to their quality of life.’

To mark the launch, colleagues from across Wales came together to celebrate at their new office in Palmerston, Barry. The occasion was an opportunity to raise awareness of the new service and highlight the positive impact it aims to have across the region.

For more information or to book an appointment, call 01446 508128 or visit the Specsavers website: https://www.specsavers.co.uk/home-hearing-tests.

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