Oddly enough, given its many advantages, the south west economy and commercial property market has been one of the hardest hit regions of the UK in the recession. There had been such a dynamic in the past decade, notably in Bristol, that it looked set to weather the economic problems more easily than most parts of the UK. That view was reinforced by it having a thriving defence and high technology industrial sector, as well as its role in the UK’s distribution network. After a difficult period, the mood has lightened with September seeing a significant improvement in the office sector, notably in the out of town market which has been in the doldrums for some time. The indicators are for the improvement to continue and before long we will be facing a shortage of Grade A stock and large industrial buildings. The economy has been improving in the past five months, said the South West RDA after a recent survey by Markit Economics, even though the seasonally adjusted Business Activity Index sank to 52.8% in August from a three month high of 54.5% in July. There was a fractional inflow of business in August but the heartening point is that recent growth has come mainly from manufacturing.
This expansion has brought a rise in employment in manufacturing, which should be translated, in due course, into demand for commercial property. Shane Vallance of the South West RDA commented: “We’ve suspected for some time that the economy might struggle to maintain the pace of its recovery, and the latest data appears to confirm this. Indeed new orders and employment have weakened considerably, particularly in the service sector” (which means lower demand for offices). According to the Trades Union Congress 100,000 jobs have been lost since the peak of employment in the third quarter of 2007. The worst affected are construction (down 24 %) and transport & storage (down by 13%). The numbers employed in agriculture have, however, risen by 52%. These analyses provide the raw material for the stagnation of the property market in the past, although the recent rise in confidence could, hopefully, overcome this.
The South West Commercial Property Register
The South West Commercial Property Register is a leading UK business property publication from Martin Austen Publishing. The aim of the publication is to offer a simple and effective means of finding Office Space in the South WestServiced Offices in the South West and industrial commercial property in the South West. You can also find the latest commercial property news for the South West region.
A further reason for a more positive view is a recent report which suggests that prime property yields in the UK could fall to around 4.85% in 2014, implying a 40% rise in prime commercial property values by the end of 2015. That is the view of a report by Chesterton Humberts and the Centre for Economics & Business Research (cebr) which noted the likelihood of low lending interest rates and the underlying strength of the financial services sector. Chesterton Humberts’ Paul Abrey said: “Our research suggests that the long term prognosis is good due to economic factors that are likely to remain in place for some time.” The cebr argues that that “the gap between government bond and property yields will narrow, indicating that investors perceive property to be a safer bet than in the recent past with the prospect of increasing values as the yields on government stock remain low.”
The South West Commercial Property Register
The South West Commercial Property Register is a leading UK business property publication from Martin Austen Publishing. The aim of the publication is to offer a simple and effective means of finding Office Space in the South WestServiced Offices in the South West and industrial commercial property in the South West. You can also find the latest commercial property news for the South West region.
Orega, the flexible office provider, is to open its first office in the south west by taking 2,508 sq.m. in Deeley Freed Estates’ Ten Victoria Street, Bristol. The property has been redeveloped and extended recently following the relocation of the law firm Beachcroft to another Deeley Freed building in Portwall Place. Orega’s Paul Finch commented: “Bristol has a stable regional office market which provides us with the same rationale for new business centres as Birmingham and Manchester where we opened last year.” As a locally born businessman, he extols the merits of Bristol for business with a tighter market and greater levels of occupancy and fewer voids. Andrew Maltby of Deeley Freed said: “Orega’s distinctive brand perfectly complements the high quality framework of our building, while its range of services and meeting rooms will provide enhanced facilities for the remaining conventional office accommodation available on the top two floors (of a five storey property).” Acting on behalf of Deeley Freed were DTZ, Colliers International and King Sturge.
The South West Commercial Property Register
The South West Commercial Property Register is a leading UK business property publication from Martin Austen Publishing. The aim of the publication is to offer a simple and effective means of finding Office Space in the South WestServiced Offices in the South West and industrial commercial property in the South West. You can also find the latest commercial property news for the South West region.
The brightest sector in the south west over the past few months has been industrial property. Sustained demand led to the decline in the amount of Grade A properties of more than 4, 465 sq.metres (50,000 sq.ft.) together with a fall in the rate of return on Grade B and C stock. In fact the overall take up, said DTZ, fell by 15% and Grade A accounts for 48% of the total. In its view, the market will “prove to be a battleground for landlords with many looking to customise stock to attract smaller local occupiers.” DTZ’s Simon Lloyd said: “While the majority of the take up has been in Swindon in the last quarter, there are a number of occupiers looking for large buildings in the region which should be reflected in the figures for the third quarter.”
The largest deal was a letting of 19,509 sq.metres (210,000 sq.ft.) at the Spectrum building, Swindon to TS Tech, an automotive company. Jeremy Hughes of BNP said: “The industrial market has been interesting with a number of large deals, such as the Cooperative leasing a 37,160 sq.metres (400,000 sq.ft.) shed at Cabot Park.” This was made possible by the surrender of land by Honda. Another major deal recently completed is the letting of a 7,989 sq.metres (86,000 sq.ft.) property at Portbury by LVT of London. Hughes said: “It will not be long before we will have a shortage of large buildings.” In Bath, one former industrial building, a printing works, is to be redeveloped by Tesco and St James to include a large supermarket, 2,787 sq.metres (30,000 sq.ft.) of creative work space, 3,716 sq.metres (40,000 sq.ft.) of offices, a museum and community space in a design by Make. The scheme will cost £50 million.
The South West Commercial Property Register
The South West Commercial Property Register is a leading UK business property publication from Martin Austen Publishing. The aim of the publication is to offer a simple and effective means of finding Office Space in the South WestServiced Offices in the South West and industrial commercial property in the South West. You can also find the latest commercial property news for the South West region.
After some years of slow activity, the out of town business parks in the south west have sparked into life this year. Increased activity by occupiers has, however, failed to dent the amount of vacant space which is increasing. Ben O’Connor of GVA Grimley said: “Take up has bucked the national trend and in the first half a total of 27,870 sq.metres (300,000 sq.ft.) was let, up a third on the previous half year total and, even better, by 60% on January-June 2009” The top deal was to Motorola who leased 5,388 sq.metres (58,000 sq.ft.) at Kembrey Park, Swindon. In addition there were “significant transactions” at SPark, the Bristol and Bath Science Park at Emersons Green, Bristol which is to have the National Composites Centre in a hybrid research and development building which will include offices. “Development activity in the south west has appeared to run contra to the national trend,” added O’Connor. “The amount of floor space under construction in the middle of the year doubled
from the start of 2010.” Even so that was only 46% of the five year average.
The challenge for the future is to reduce the 130,060 sq.metres (1.4 million sq.ft.) of empty office space, which is at a 14 year high. The optimistic view is echoed by Simon Price of Alder King who said: ”We have experienced an upturn in activity since the beginning of September with an increase in the number of companies looking at space. Indeed it has been our busiest month for a year and the rise was particularly marked in the out of town market where there have been a number of lettings, such as 3,716 sq.metres (40,000 sq.ft.) to Mitie at Emersons Green and 5,574 sq.metres (60,000 sq.ft.) at Bristol Business Park.” Price added that there are also two sizeable deals in the pipeline for Aztec West to add to a year “which has gradually got better. We are hopeful that the trend will continue and be amplified by the fact that there is a lack of new development.” The signs are good because Price has recently undertaken appraisals of new schemes.The South West Commercial Property Register
The South West Commercial Property Register is a leading UK business property publication from Martin Austen Publishing. The aim of the publication is to offer a simple and effective means of finding Office Space in the South WestServiced Offices in the South West and industrial commercial property in the South West. You can also find the latest commercial property news for the South West region.
The government architectural watchdog, CABE, has given
Swindon a hard time over two of its development projects.
It has called for a design rethink on the £100 million housing led development of the Swindon College site because of its concerns about the plans from Ashfield Land and Parkridge.
CABE said: “This is a unique opportunity to create a new piece of town and improve the connection between the old
town and the new and help raise the profile of Swindon.”
It also criticised plans by Swindon Gateway Partnership for a large housing and community scheme and an extension to the Great Western Hospital site near Coate Water Country Park. One part of the town’s regeneration that is going ahead is the green walls feature as part of the Public Realm Works for a new look Canal Walk. They will cover the south side of the bridge that connects the Brunel Plaza with the Brunel Arcade and the north side of the bridge. Green walls are living, planted structures that continuously change and evolve as the plants grow and mature within them.
The South West Commercial Property Register
The South West Commercial Property Register is a leading UK business property publication from Martin Austen Publishing. The aim of the publication is to offer a simple and effective means of finding Office Space in the South WestServiced Offices in the South West and industrial commercial property in the South West. You can also find the latest commercial property news for the South West region.
An unusual business centre at Clevedon Hall, a Victorian mansion in north Somerset has started operations. The policy at the Enterprise Development Centre (EDC) is to support business growth by providing enhanced managed serviced offices with low overheads and flexibility. EDC’s Peter McCarthy commented: “Our philosophy is to support small and medium sized businesses (SMEs) to achieve sustained profitable growth.” The flexible contracts can include a range of shared services, such as scaleable software applications as well as mentoring by seasoned
entrepreneurs. The first business at the EDC was Goodridge Environmental, a specialist turbine and general power provider specialising in remote areas. Goodridge’s Chris Williams said: “The EDC is perfect for an aspiring young business like ours. It’s a supportive entrepreneurial environment as well as being in stunning surroundings.”
He added that “discussions with the EDC management team has already helped to save our business nearly £3,000 by following their advice on using hosted shared platform software.”
The South West Commercial Property Register The South West Commercial Property Register is a leading UK business property publication from Martin Austen Publishing. The aim of the publication is to offer a simple and effective means of finding Office Space in the South WestServiced Offices in the South West and industrial commercial property in the South West. You can also find the latest commercial property news for the South West region.
One major new industrial scheme on the horizon for Swindon is a 74,009 sq.metres (796,649 sq.ft.) distribution centre for B&Q at G. Park being developed by Gazeley. It is adjacent to the A149 and will service stores in southern England and will have a completed value of £70 million. Gazeley’s Nigel Godfrey said: “We will complete the facility next summer, As well as reducing the environmental impact of the development, Gazeley has sought to ensure that the building will deliver significant annual operating costs saving to B&Q through reduced energy consumption.”
The South West Commercial Property Register
The South West Commercial Property Register is a leading UK business property publication from Martin Austen Publishing. The aim of the publication is to offer a simple and effective means of finding Office Space in the South WestServiced Offices in the South West and industrial commercial property in the South West. You can also find the latest commercial property news for the South West region.
Oddly enough, given its many advantages, the south west economy and commercial property market has been one of the hardest hit regions of the UK in the recession. There had been such a dynamic in the past decade, notably in Bristol, that it looked set to weather the economic problems more easily than most parts of the UK. That view was reinforced by it having a thriving defence and high technology industrial sector, as well as its role in the UK’s distribution network. After a difficult period, the mood has lightened with September seeing a significant improvement in the office sector, notably in the out of town market which has been in the doldrums for some time. The indicators are for the improvement to continue and before long we will be facing a shortage of Grade A stock and large industrial buildings. The economy has been improving in the past five months, said the South West RDA after a recent survey by Markit Economics, even though the seasonally adjusted Business Activity Index sank to 52.8% in August from a three month high of 54.5% in July. There was a fractional inflow of business in August but the heartening point is that recent growth has come mainly from manufacturing. 
