| the south west
PLYMOUTH CATCHES UP A
gents have been saying that their stock of commercial property has been dwindling for some time reports Ifan Rhys- Jones BSc MRICS Listers Property Consultants Plymouth. The City of
Plymouth too is now finding demand
outstripping supply,
Ifan Rhys-Jones
particularly for industrial and investment property. Plymouth occupies a rather unique situation in the UK, being such a large city
(pop.250,000), in a relatively remote location so it’s no surprise its market sometimes bucks the trend. Exeter is nearly 50miles to the east and Bristol another 50 so aside from the city’s infrastructure challenges it has to cope with its geography. The high quality of life and low cost of living make it attractive so
businesses are thriving, with a good labour supply and years of subsidy having funded growth for the last 30 years or so. The weak pound is now driving growth and some re- homing, fuelling the fire already being stoked by growth in internet shopping and its related distribution to every part of one of the largest counties in Britain. Since the GDO changes, offices have been lost on a large scale to residential and student housing and PRS as an asset class is driving new demand for redundant office buildings. Development activity has for some years been limited to student housing schemes and small unit hybrid industrial units, of which Plymouth can’t get enough. Cheap debt, tax advantages and poor returns on other forms of investment are driving demand from owner occupiers and investors alike. Multiple taxation events designed to suppress the buy to let market, are shifting small investors’ attention to commercial property. Institutional investors are also under pressure as Councils compete for investment income using even cheaper central Government debt to buy property assets, subsidising the ratepayer and safeguarding surpluses in
THE COMMERCIAL MARKET IN N. DEVON
David Edwards of John Smale and Co reports...
he market for commercial in North Devon has its ups and downs with good demand on some properties and little interest on some others. Retail is having its problems in the secondary areas with some streets previously active beginning to see a number of empty shops with rents on the decline. The prime areas still seem to be holding up but the prime areas seem to be shrinking. We have seen some recent lettings in secondary areas but only when the landlords have been very flexible with rents, rent frees and break clauses. In the office sectors there is a shortage of good quality open plan space with parking. There has been a steady flow of new requirements for the area with companies expanding but difficult to find the correct space.
T
Industrial still seems to be the best performer with a distinct shortage of smaller space, of 1000-2000sq.ft. Some new units have now been built soaking up some of the demand. Our clients development at Mullacott, Ilfracombe letting/selling off plan for £6 & £100 p.s.f is
88
getting some good interest for 2000 sq.ft units. We had on the market some old units on Pottington, Barnstaple totalling 13,000sq.ft made up of different unit sizes, this was quickly fully let at rents from £4 p.s.f. to £6 p.s.f. The secondary investment market has some good level of interest as investors favour the commercial investment over the difficulties of the residential investment market. However, we are seeing a number of freeholders keen to sell, although not always happy with the market rate and expecting higher figures.
Some interesting changes are occurring in the town of Barnstaple with the development of Anchorwood Bank. Asda is all now completed but looking forward to the arrival of Next, DFS, Chiquitos and Frankie & Benny’s with the proposal of 172 new homes. The future of the old Shapland & Petter buildings is still undecided, but there is hope for mixed use proposals for next year. A pedestrian bridge linking the Anchorwood Bank area is also proposed. The town continues to grow and prosper.
one go.
All this has resulted in an acute supply shortage and while yields are already low, rents are likely to increase now, as the squeeze on businesses forces them to pay more for premises to access the markets and labour supply available at such a distance from other population centres. The prospects for the city are, then, good as development of larger industrial buildings looks likely to be the next sector to see improved viability without EU subsidy. And Plymouth has a land supply, both east and north of the city, in the adjacent borough of The South Hams, at locations like Langage Park and the new town of Sherford.
What about Brexit? What about it? The pattern seems to be following the UK trend and ignoring the politics and economic implications of leaving the EU, on the assumption that we’ll find another way. The Assisted Area status afforded to Plymouth and Cornwall is surely to be replaced by another form of UK Government controlled gap funding. It’s all go for Plymouth then. Visit
www.listers.uk.com
of the Year Award at this year’s Landscape Institute Awards, at a ceremony hosted by bestselling author Bill Bryson. Clinton Devon Estates, who own and manage 25,000 acres across Devon, were recognised for excellence in working with and respecting landscape architecture in their developments. They were nominated for the award by the landscape architecture team LHC Architecture + Urbanism, who have worked with the Estate for over a decade. The award is an endorsement of the
CLIENT OF THE YEAR A
Estate’s efforts to create a sustainable future for the environment and local communities, and is recognition of the architects’ expertise in realising the landowner’s vision. Clinton Devon Estates and LHC share the view that sustainable communities have their roots in the past but look to the future, and should sit naturally with the history and landscape of their locations. The stand-out schemes cited in the nomination included the Estate’s forthcoming Plumb Park development on the outskirts of Exmouth, Devon’s biggest town.
COMMERCIAL PROPERTY MONTHLY 2017
major Devon landowner has been presented with the prestigious Client
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