The West Country


Cheltenham Market Commentary By Richard Crabb MRICS Partner THP CS


from home” continues to tax occupiers trying to assess what they need going forwards. When they do move it needs to be the best quality, meaning high specification or have a special appeal like a character building. At the high spec end we are now 100% let at Honeybourne Place in Cheltenham - 55,000 sq ft of new Grade A space which set new rental levels of £35 p.s.f. with all letting happening during and after the pandemic.


The old


I can’t believe as I write this we are at the end of March 2024 already – the year has sped past so far. What are the key moments from the last 12 months?


I can’t believe as I write this we are at the end of March 2024 already – the year has sped past so far. What are the key moments from the last 12 months?


With a muted economic backdrop and


relatively high interest rates confidence has been lacking, but in any market the right product will succeed and that doesn’t necessarily mean dropping the price.


The key for offices has been quality as “work


Zurich HQ in Bishops Cleeve is now in new ownership and known as Grange Park. There is 185,000 sq ft of space in 14 acres and phase 1 of a major refurbishment is now complete with 2 lettings of 10,000 and 15,000 sq ft done and serious interest in another large chunk of phase 2.


Serviced or short term space has found favour with occupiers hedging their bets on what they need and clients at Festival House in Cheltenham have extended their Clockwise serviced space to meet the need and at Grange Park we let 9,000 sq ft to Regus who have already let the majority of the space.


Character space which is unique or unusual and done to a high standard has performed well – again we have seen new rent levels of £35 p.s.f. at Formal House in Cheltenham which was an old furniture depository building


Invest in Gloucestershire


Invest in Gloucestershire, originally a four-year ERDF-funded initiative set up in early 2019 by GFirst LEP, has the strategic ambition of facilitating international businesses to relocate or expand in the county in order to drive growth in the local economy and create new jobs for the local and wider community.


The Invest in Gloucestershire project focuses on promoting specific key sectors to global investors which includes


Agri-tech; Cyber; Aerospace; Advanced Engineering and Digital Technology.


The project has been led by the Invest in Gloucestershire team at GFirst LEP, working in partnership with the County Council and the six


districts, along with central Government


(particularly the Department for Business & Trade) and local partners such as our very supportive academic institutions and industry groups,


like CyNam. Whilst ERDF funding


was completed in March 2023, the valuable contribution the initiative has made to the County has enabled further funding to be ring- fenced to ensure the project’s continuation.


A Summative Assessment was undertaken at the conclusion of the ERDF funding and identified the numerous key benefits the project had made to the local economy including 144 new jobs created; a gross added value of £11.17m, meaning that for every £1 of public investment, a further £11.60p was generated in the local economy and the cost per job, at £16,637,


COMMERCIAL PROPERTY MONTHLY 2024 Other important initiatives created by the


programme that continue include The Gloucestershire Agri-tech Partnership, comprised of experts from the Royal Agricultural University, Hartpury University and Hartpury College, the University of Gloucestershire (CCRI) and Campden BRI. The Partnership was formed to foster collaboration and promote the unique cluster strengths the county has to offer and hosted a high-level visit from the Department of Business & Trade in early 2024.


Senior Director, Richard Knightley,


commented: “It’s great to see Papa Johns have already injected energy back into the ground floor and to once again see this building being put back to commercial use.’.


For more information about KBW’s Commercial Agency services, please contact


Richard Knightley Hatten on 01242 244744. or Laura


was also highlighted as delivering good value, comparing favourably against similar inward investment projects that typically have figures between a range of £25,700 and £71,000 per job. The assessment concluded that the project created a step change in the way Gloucestershire promoted its key sectors internationally, via a highly targeted and proactive programme.


With the recent confirmation that the project will continue as the LEP transitions across into Gloucestershire


County Council, the team


have an ever-increasing pipeline of enquiries and plans to bolster lead generation activities. This will include building on the ‘offer’ through strengthening partnerships, promoting good quality commercial spaces, highlighting sustainable


supply chains and showcasing


Gloucestershire on the international stage as a great place to live and work.


with 40,000 sq ft of space and at Elkstone Studios towards Cirencester a rural scheme was fully let post covid, with some occupiers drawn out of nearby towns by the quality and appeal of the unique development and most reduced their floor area.


Permitted development is still a factor locally with high residential values and we have sold 2 run-down office buildings of 15,000 sq ft each in the last 12 months. This again puts pressure on the remaining office supply. Anything residential remains popular, defying the weakened residential market and rising build costs.


Industrial remains strong and at Kingsditch Trade Park phase 3 has been fully pre-let to a single occupier (details t.b.c. !).


Retail has been through a significant shift in demand, but we have just let the former RBS branch in a prominent corner location on the town`s famous promenade. The occupier is a secret for now, but they will open in September after a major refit.


For more details please visit


www.thponline.co.uk


KBW Sells a Slice of Tewkesbury High Street


Swapping loans for provolone, the former Barclays bank at 133-134 High Street is now home to Papa Johns.


After Barclays Bank closed its doors, KBW was instructed to find a new occupier for the property on behalf of the then owners. Having long housed a bustling banking hall, changing consumer habits and the evolution of the financial sector, has required the building to adapt to the changing needs of the High Street.


KBW agreed a sale to an investor / developer who had Papa Johns lined up to take the ground floor, bringing their passion for quality Pizza ingredients to the town of Tewkesbury.


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