Business

Commercial property demand falls but investment enquiries for industrial space up

Published

2 months ago

July 24, 2024

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

Local site managers triumph in prestigious House-Building Awards

Published

7 hours ago

September 16, 2024

Tom Sinclair

PEMBROKE and Cardigan site managers have been celebrated for their exceptional dedication to quality house-building, earning top accolades in the industry’s most esteemed competition.

Gareth Davies of T I Davies A’I Fab Cyf and Mike Thomas of South Meadow Homes Ltd, representing Cardigan and Pembroke respectively, were among the prominent winners at the National House Building Council’s (NHBC) Pride in the Job Awards 2024. The prestigious event, held at Celtic Manor Golf Club in Newport on Friday, 13 September 2024, recognises the very best in the industry.

In the Small Builder category, Gareth Davies clinched the top honour for his outstanding work at Maes Y Dderwen in Cardigan. His exceptional commitment to raising standards was further acknowledged with the Pride in the Job Seal of Excellence. Meanwhile, Mike Thomas was awarded the Seal of Excellence for his work in Pembroke, demonstrating the high standards upheld by builders in the region.

Matthew Coyle of Redrow Homes South Wales was also a major winner on the night, securing the Large Builder category award for his work at Parc Y Coleg in Newport. Like Davies, Coyle was awarded the Pride in the Job Seal of Excellence, marking his dedication to quality construction.

The Pride in the Job Awards, now in its 44th year, are regarded as the ‘Oscars’ of the house-building industry, setting the benchmark for exceptional site management. The competition is known for its rigorous judging process, which assesses entrants across six key areas: consistency, attention to detail, leadership, interpretation of drawings and specifications, technical expertise, and health and safety.

This year, eight site managers from across Wales received the Seal of Excellence, having first earned a Quality Award in the initial round of the competition in June. The full list of Seal of Excellence recipients includes:

Gareth Davies of T I Davies A’I Fab Cyf, Cardigan
Matthew Coyle of Redrow Homes South Wales, Newport
Dave Jones of Barratt and David Wilson Homes South Wales, Swansea
Paul Oakley of Bellway Homes Wales, Cardiff
Nick Powell of Redrow Homes South Wales, Newport
Nick Rumble of Persimmon Homes West Wales, Pontyclun
Mike Thomas of South Meadow Homes Ltd, Pembroke
Daniel Williams of Taylor Wimpey South Wales, Penarth

Steve Wood, CEO at NHBC, extended his congratulations to the winners: “For more than four decades, Pride in the Job has underpinned NHBC’s purpose of raising standards in house building. The competition recognises the UK’s top site managers, showcasing best practice and rewarding excellence. Winning site managers demonstrate dedication, passion, and leadership to ensure new homes are delivered to exacting construction quality standards.”

The regional events, taking place throughout the UK, aim to celebrate these achievements and acknowledge the recipients of the Quality Awards. Mr Davies and Mr Coyle will now progress to the next stage of the competition, vying for the ultimate prize in house building at the Pride in the Job Supreme Awards, set to be revealed at a gala ceremony in London in January 2025.

Business

Specsavers expansion ‘shows confidence in future of Haverfordwest’

Published

8 hours ago

September 16, 2024

Tom Sinclair

SPECSAVERS’ decision to expand into larger premises in Haverfordwest is further proof of the confidence of businesses in the future of the County Town.

That was the message from Pembrokeshire County Council Deputy Leader Cllr Paul Miller to news that the leading optometry company will move to larger premises at the Riverside Shopping Centre.

Specsavers has signed a lease with the Council to expand into the building previously occupied by Boots and Poundland.

The additional space will allow for 14 examination rooms fitted with state-of-the-art technology that will enable Specsavers to provide more enhanced sight, contact lens and audiology services for its customers.

Cllr Miller, who is also the Council’s Cabinet Member for Place, the Region and Climate Change, said: “I’m really pleased that we’ve been able to support Specsavers in expanding and investing significantly in Haverfordwest.

“This shows confidence in both the present and future of Haverfordwest which is undergoing major regeneration by Pembrokeshire County Council.

“Through taking control of the Riverside Shopping Centre we have been able to secure investment and tenancies in the town while also recovering the Council’s investment to purchase the site.

“Alongside the great news that leading food and drink company Loungers is moving into our Western Quayside development, I am confident further businesses will be drawn to the town centre.

“The work we’re doing will ensure Haverfordwest is an attractive place for businesses to operate and a great place for people to live, work and visit.”

Andy Britton, one of the partners of the locally owned store, said: “We are so pleased to be making the move into larger premises. The additional space will allow us to better accommodate the increasing demand for eye tests and audiology clinics in the area and help take some of the pressure off the NHS.

“The new store will open later this year and we look forward to celebrating its launch with customers old and new.”

Pictured top of article: Cllr Paul Miller, Deputy Leader of Pembrokeshire County Council (centre) with Andy Britton (left) and fellow partner Wayne Jones at the Riverside store which will be home to an expanded Specsavers.

Business

Former Cleddau Bridge Hotel site up for sale for £1.2m

Published

9 hours ago

September 16, 2024

Tom Sinclair

A FORMER hotel site in Pembrokeshire is now on the market, having received planning permission for a new care home. The site, previously home to the Cleddau Bridge Hotel, is listed for sale at £1,200,000.

The Essex Road location, which spans 2.45 acres, has been granted outline planning permission for the construction of a care facility accommodating between 55 and 70 beds, as well as six retirement bungalows. This significant development is set within Pembroke Dock, lying just 120 metres from the A477, and is encompassed by the Pembrokeshire Coast National Park. The area boasts convenient access to amenities such as a shopping centre, restaurants, cafés, hotels, a pharmacy, sports clubs, and recreation grounds.

***The fire was in March 2019 (Pic Herald)***

Planning consent for this project was conditionally approved by Pembrokeshire County Council in February 2023. The approval was given for the “Demolition of Hotel and Siting of Residential Care Home and Linked Bungalows,” marking a new chapter for the site that has remained derelict since a fire in 2019.

The Cleddau Bridge Hotel has been out of operation since March 2019, when a blaze caused extensive structural damage, leading to the collapse of several sections of the building. This incident thwarted earlier plans to convert the hotel into a 48-bedroom care home, a project that had been green-lit following a change of use application in 2018.

Due to the damage incurred, a new application was submitted for the demolition of the existing structure and the erection of a new care home. The planning proposal also included provisions for the six retirement bungalows, intended to be occupied by elderly residents who could assist with activities at the care home.

The fire that devastated the former hotel required a substantial emergency response, however, an investigation by Dyfed-Powys Police concluded there was insufficient evidence to identify a suspect.

This site is now poised for a new beginning as a care facility, providing much-needed services to the local community. Interested parties can find more information about this listing, handled by Christie and Co, on Rightmove.