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Occupier demand for commercial property in Wales rises for first time in two years

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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

St Davids micro-bakery scheme and alterations backed

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A PLANNING application has been approved to convert an outbuilding into a micro-bakery and carry out upgrades to a Grade II-listed property in St Davids.

The proposal, submitted to the Pembrokeshire Coast National Park Authority by Richard Francis and Sue Benge through agent Pembroke Design Ltd, relates to Manor House at 19 High Street, located within the St Davids conservation area.

The application sought permission for the refurbishment and change of use of an existing outbuilding to form a small-scale bakery, as well as a series of alterations and extensions to the main listed building.

The applicants aim to develop a plant-based bed and breakfast and micro-bakery business that serves the St Davids community, with a commitment to sustainability at the core of the project.

A supporting statement said: “It is the client’s goal to improve and upgrade the listed building, to reduce the carbon impact of the building by the removal of fossil fuel energy, improving energy efficiency and insulation, installing solar and heat pumps, thereby creating a sustainable, plant based bed and breakfast and micro bakery business serving the community of St Davids.”

The proposed bakery will be operated on a limited basis by the occupants of the property, typically opening two days a week.

Sales will be available through online order and collection only.

Other works include a modest single-storey rear extension, new heritage-appropriate timber double-glazed windows and doors, internal alterations, and the installation of rooflights.

Plans also include reinstating a historic window opening, fitting an air source heat pump, and other energy efficiency upgrades.

Additional proposals include solar panels on the outbuilding, a greenhouse in the rear garden, and other external works.

St Davids City Council supported the application, noting that it is unlikely to have a detrimental visual or environmental impact on the surrounding area.

Planning officers recommended approval, noting that the scheme has been carefully designed to respect the character and heritage value of the listed property.

An officer report stated: “The proposed development has been carefully designed to respect the character, appearance and significance of the listed building and its setting.

“The proposed rear extension is modest and subservient in scale, whilst the alterations to the existing building have been designed to improve its functionality, energy efficiency and long-term viability without causing unacceptable harm to its special architectural or historic interest.”

The micro-bakery was described as a “beneficial re-use” of the outbuilding.

 

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Business

Popular Newgale surf shop and home works approved

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A SCHEME to improve a Pembrokeshire seaside village home and surf shop, while also removing an unlawful part that was subject to an enforcement notice, has been given the go-ahead.

In an application to Pembrokeshire Coast National Park, Bruce Sanderson of New Surf, through agent A D Architectural Design Consultants LTD sought permission for internal and external alterations to dwelling and surf shop, at New Surf, Newgale, including the removal of an un-lawful use of part of the ground floor as a shop.

The proposals were supported by Nolton and Roch Community Council.

An officer report recommending approval said: “The proposal returns the dwelling building to full residential use only. The application site is in a particularly sensitive location and appropriate mitigation has been sought and conditions imposed to preserve protected sites and species.”

It added: “The property known as Newsurf is a two-bedroom dormer bungalow with adjoining surf shop opposite the shingle bank of Newgale beach. The surf shop is positioned southeast of the bungalow and comprises a pair of pitched roof store buildings with linking flat roof section to the dwelling. Prior to being a surf shop, the application site was a filling station.

“The southern ground floor area of the dormer bungalow has been in retail use without planning authorisation and the remaining ground floor as residential use. Plans show two bedrooms and a storage area on the first floor of the dwelling.”

It detailed the proposals addressed the unauthorised aspects of development relating to a 2022 national park enforcement notice.

It concluded: “The proposed scheme is considered acceptable in how it responds to landscape setting, visual, aesthetic, historical, cultural and ecological aspects and also the physical characteristics of the site.

“The proposal preserves and enhances the character of the dwelling and by doing so will not create an unacceptably detrimental impact on the special qualities of the National Park. It is not considered that the development will cause an unacceptable impact upon privacy or amenity of neighbouring properties.”

The application was conditionally approved.

The Newsurf site also features in plans by a Vodafone phone company subsidiary to bring fibreoptic cables across the sea from Ireland to Pembrokeshire; the onshore part of a project to bring a fibreoptic cable onshore from Kilmore Quay, Wexford, Ireland to a site at Newsurf shop car park, Sands Café Car Park and the Duke of Edinburgh Inn, Newgale.

No decision has yet been made on that application.

 

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Business

Haverfordwest Creamery wins top honours at world’s largest cheese show

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First Milk site secures four major trophies as co-operative celebrates 26 awards at International Cheese & Dairy Awards

FIRST MILK’S Haverfordwest Creamery has celebrated major success at this year’s International Cheese & Dairy Awards, after helping the farmer-owned co-operative secure 26 awards at the world’s largest cheese show.

First Milk won eight gold medals, 11 silver medals, one bronze medal and six major trophies at the prestigious awards, with cheese produced at Haverfordwest Creamery securing four of the competition’s top honours.

The Pembrokeshire creamery won the CHR Hansen Trophy for Champion Double Gloucester, the Tetra Pak Tebel Award for Best Extra Mature Creamery Block Cheddar, the ICDA Award for Best Medium Creamery Block Cheddar and the First Milk Past Masters Trophy.

The results underline the quality and consistency of the cheese produced at the Haverfordwest site, which continues to play a key role in First Milk’s award-winning cheesemaking operation.

Held annually, the International Cheese & Dairy Awards attracted its highest number of entries in several years, with many of the creamery cheddar classes receiving between 30 and 40 entries.

First Milk was recognised across a wide range of cheddar and regional cheese categories, including Double Gloucester, Red Leicester, Welsh cheese, vegetarian cheese and English creamery cheddar.

Jack Eade, Customer Quality Manager at First Milk, said the awards reflected the hard work of teams across the business.

He said: “These awards are incredibly hard won and reflect the dedication, expertise and passion of everyone involved in producing our cheese.

“To receive recognition across so many categories at one of the world’s most respected cheese competitions is something everyone at First Milk can be enormously proud of.

“While our grading team selects and prepares the entries, none of these achievements would be possible without the commitment of our farmer members producing exceptional quality milk, and the highly skilled teams at our creameries transforming it into consistently award-winning cheese.”

The latest success continues First Milk’s long-standing record at the International Cheese & Dairy Awards and reinforces Haverfordwest Creamery’s reputation as one of the leading producers of award-winning British cheese.

Photo caption:

Rod Addy, Director General of the Provision Trade Federation, with First Milk’s Matthew Hooper and Dawn Mason at the International Cheese & Dairy Awards

 

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