Wales TBC
South West Wales Commercial Property Market Update: By Jason Thorne, Director at Hunt & Thorne Chartered Surveyors, Swansea.
Personal development of the employees is the main reason for the decision making. Also all generations preference is to return to face to face meetings. There are now many requirements at around 10,000 to 15,000 sq ft. The practice effected two completions in the last month of office buildings of 5,000 sq ft, deals which did not exist in the previous two years.
The success in the office market has also occurred due to landlord’s willingness to refurbish their property. The worst decision a landlord can take, is settle a dilapidations and not inject that cash back into refurbishing their property. Even in the commercial world, very few people have the imagination to understand what a property will look like, after a refurbishment. Also most companies don’t have the time to wait for a premises to be refurbished, in their decision making process.
Will we see a change in fortunes in the Office market in 2024? Like retail, the office market was devastated by COVID speeding up changes in habits, due to modern technology. Companies took advantage in cutting operating costs, by allowing their employees to work from home or a more hybrid model. However we have witnessed a slight change in decision making in the Swansea Bay area.
Up until the end of 2023, down sizing and hybrid working was the main reason for transactions being undertaken. But this changed at the start of the year, with the majority of transactions being expansion and at least the majority of the working week, being a return to the office. Unless the workforce can be measured on a pure sale basis, such as the closure of the Admiral development in Swansea Vale, companies are now pushing for the workforce to return to the office.
This year we will witness the completion of new office developments in the Swansea City Centre, creating badly needed Grade A office accommodation. It is hoped that this new enthusiasm from developers repeats itself to the regional town centres throughout South West Wales. What better way to breath new life into run down retail centres, by bring office works back to the retail core.
On the industrial side of the market, demand has tailed off a little from a previously run away market place, created due to online demand. But there are still gaps in supply in all size ranges. Rentals remain strong and continue to hit record levels in the sub 5,000 sq ft market. There is a real acute shortage of industrial buildings to purchase, which is resulting in capital values continuing to rise. The South West Wales market will experience challenges with the decommissioning of the large Tata facility in Port Talbot and it’s ripple effect on the supply companies. But there are really good quality manufacturing business in the area. With a little government support, these companies could expand, filling the void.
COMMERCIAL PROPERTY CONSULTANTS IN SOUTH WEST WALES
SPECIALISING IN: •
LEASE ADVISORY
• AGENCY • MANAGEMENT
Hunt & Thorne Chartered Surveyors Suite C1, Conwy House Castle Court Phoenix Way Enterprise Park Swansea SA7 9EQ
01792 776600
enquiries@huntandthorne.com
COMMERCIAL PROPERTY MONTHLY 2024
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