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Offices ReviewConfidence returning SOUTH WEST This has resulted in the
availability of grade A space in the city centre standing at a higher
level than it has been for several years at circa 410,000 sq ft across
eight buildings and, although headline quoting rents for the best new
accommodation are holding at £28 psf, the few deals which have
been completed over the last few months have been at rents below this
level. In terms of the development
pipeline, there are just four new office schemes, which are either 100%
pre-let (to The Environment Agency, Hargreaves Lansdown, and The Court
Service), or substantially pre-let in the case of 1 Glass Wharf, the
new Burges Salmon headquarters nearing completion at Temple Quay. Planning consent exists for
the construction of more than 1.25 million sq ft in and around the city
centre, but of the schemes with consent only HDG Mansur's Bridgwater
House, Finzel's Reach is expected to make a start on site. Moving forward
the city is facing the very real prospect of a shortage of new Grade
A space resulting in the vacancy levels falling significantly, and in
the short term this will help to stabilise the Bristol office market
and minimise potential rent falls. On the occupational side
there are signs that activity is starting to improve, with tenants now
recognising that they have an excellent opportunity to upgrade their
accommodation and secure lease terms which are unlikely to be repeated
once conditions improve. While this improvement may not impact on the
2009 take up figures the signs are much more promising looking forward
to 2010 and 2011." CORNWALL "This is good timing
as there are several opportunities for companies to relocate and benefit
from some attractive deals and upgrade to better quality space in modern
surroundings. There is now a good choice of quality accommodation which
is attractively priced to secure lettings," says Mike. "By way of example,
we were offering the Abbey Warehouse overlooking the Abbey Basin in
Penzance. The building which was converted and comprehensively refurbished
during the last year includes approx 6,000 sq ft and have been taken
by locally based companies Nuon Renewables and FL Smidth off rentals
based on £10 psf with some assistance in terms of a rent free
period to assist with relocation costs. Adjoining the building planning
consent exists for The Sail, a contemporary glass fronted building which
will include 4,400 sq ft of space over three floors and are available
by way of a pre-let on a similar basis. Carew House which is a conversion/re-build
of an historic building on the former St Lawrence Hospital site, now
known as BeaconTechnology
Park is now complete. The office includes up to 2,282 sq m (24,560 sq
ft) of accommodation in suites from 72.1 sq m (776 sq ft). The quoting
rental is £12 psf, however there are rent incentives such as a
reduced rental for the first year and a potential rent free period to
assist tenants with their relocation costs. The building is well placed
on the edge of Bodmin town centre with easy access to the A30 and A38.
It is situated in a parkland setting and includes many historic features.
It is of a much higher quality than any other office space in the town
and should prove attractive. Another new development which
has just been re-launched is Falcon House in Truro. This building includes
1,858 sq m (20,000 sq ft) of offices over three floors. The building,
which is completed to a high specification and includes an atrium-style
entrance hall with lantern glazing, together with basement car park
and external sun courtyard. It is available in whole or part under a
new Lease off an asking rental based on £10 psf. Additional incentives
are also are available including a rent free period to assist with office
fit outs. On the outskirts of Truro
on the Truro Business Park, Cormorant House is attractively priced for
businesses seeking less space. The ground floor is being re-marketed
at an asking rental of £9.50 psf. There is currently 2,900 sq
ft available together with eight parking spaces. Clearly given the opportunities
listed above and the general improvement in business confidence now
is the time to relocate. The coming months will bear testament to that." Truro "Prospective tenants
have currently got the choice of at least a dozen modern, if not new,
buildings in any of Truro's three main office locations, in total there
is over 100,000 sq ft on the market presently. At Newham we have almost
new offices on the market at Truro Technology Park as well as older
accommodation at both Riverside House and Morlaix House, popular due
to having parking and being easily accessible by road, yet only a short
walk into town. In the city centre there
is a range of accommodation on offer from older suites of just 250 sq
ft to the 22,000 sq ft town centre building Falcon House, which has
now sat empty since construction was completed well over 12 months ago.
Threemilestone is popular
due to its location between the city centre and the A30, the majority
of office space is fairly modern and we have suites available from circa
1,400 sq ft to 8,500 sq ft at Glenthorne Court. Quoting rents in all three
locations range from less than £10 psf to over £15 psf,
with the majority of good quality modern space coming in at around £11
- £13 psf. We are seeing some short
rent-free periods and incentives being offered however from conversations
with both colleagues and fellow professionals from outside of Cornwall
it seems as though the local market is still holding up better than
the market in other parts of the country." WILTSHIRE "The statistics tell
their own tale and in practical terms industrial/warehouse take up in
Swindon stands at 360,000 sq ft and take up of offices 120,000 sq ft.
That said there is currently approx 60,000 sq ft of office accomodation
in solicitors hands and a number of live requirements yet to be satisfied. In terms of recent market
activity RWE have recently taken 35,000 sq ft on Lydiard Fields and
it is understood that BAM also have another 25,000 sq ft under offer
which is a terrific achievement in the current climate and a real vote
of confidence for the town. Elsewhere both St Martins
and IVG have high quality office accommodation immediately available
on Windmill Hill (Sigma and Stella) and Lydiard Fields (Kingston House).
The immediate availability of Delta 1100 coupled with the strong likelihood
that ING will look to refurbish Santana in due course ensures that there
is still a healthy supply of high quality office accommodation in west
Swindon. For those more bespoke requirements Windmill Hill offers Design
and Build opportunities between 50,000 and 100,000 sq ft upwards. To the east of the town Richmond
House and Warwick House on Edison Park present excellent opportunities
for occupiers looking for easy access to the M4, Cirencester and Oxford.
Edison Park is now uniquely positioned to cater for a wide range of
office requirements from 1,000 sq ft upwards as well as design and build
opportunities. On the regeneration front
MUSE Developments are currently finalising their proposals for the prestigious
Union Square Scheme which will provide high quality office accommodation
and associated public realm. MUSE are already in detailed discussions
with a number of occupiers including a substantial office pre-let which
could see the first office buildings ready for occupation during 2012.
In terms of a town centre
availability update both Premier House and One Gloucester Street are
currently on the market and both buildings are capable of satisfying
larger town centre corporate enquiries up to 50,000 sq ft. Development land remains
in fashion this year and Swindon has seen some of the largest commercial
land transactions in the UK. Oxford University are now on site building
the new Bodlian Library on the 17 acres at Keypoint just South of Honda
and this illustrates well the opportunities that Swindon can offer.
Similarly in July we have
seen Gazeley, conclude their purchase of the 98 acre site just north
of Honda, now known as GPark Swindon. This site alone can offer a single
building of 650,000 sq ft if required which can effectively provide
one of the largest warehouse facilities available on the M4. It is difficult to crystal
ball gaze into the future; however the influence of the recession on
the commercial property market has been very similar to the last recession
of the 90's. If we continue to follow this as an example, while the
market will not improve particularly quickly, we will start to see a
strengthening in the marketplace and reductions in the overall supply
available. While 2009 will not go down
as one of the better years, this year to date has not been nearly half
as bad as it could have been." "The Swindon office
market," reports James Gregory of Alder King, "has seen a
resurgence in interest at the larger end of the scale with RWE NPower
taking the whole of Auckland House at Lydiard Fields and Washington
House being firmly under offer. That will be 60,000 sq ft in two brand
new buildings taken out of the market and both let at good headline
rents. There have also been a handful
of other good sized lettings albeit at lower rents but it is important
to note that supply is being eroded. The fact that a wide variety of
companies still have active requirements is key to the agency market
and these are continuing despite difficult economic conditions. There
are a number of unsatisfied large requirements and this bodes well for
the town. The town centre is also seeing
a rise in the level of interest for the long awaited Union Square development
where Muse Developments are talking to several potential occupiers.
Contractors are also on site refurbishing the newly named Station Square,
formerly 125 House, and there are other refurbishment opportunities
which will come forward in the next few months. This presents a much more
positive picture for the town than some commentators who dabble on the
fringes have recently suggested. It is always frustrating when you read
articles that are factually incorrect due to a lack of knowledge by
the commentator." SOUTH WALES The letting provides for
the refurbishment of two floors of offices along with an extension of
the concourse level with a capital expenditure of over a million pounds. The refurbishment will incorporate
a new "state of the art" glazed atrium/ reception and will
improve disabled access and the prominence of the entrance to Clarence
House. Flexible 8,000 sq ft floor
plates, central location, easy access to rail and bus terminals and
also its unrivalled secured covered parking provisions of three spaces
per 1,000 sq ft, has proved attractive to Government, plc and private
companies. Haydn Thomas of Hutchings
& Thomas commented: "This letting demonstrates the continued
success of Clarence House in attracting and retaining major tenants
and with the ongoing refurbishment programme will meet the demands of
tenants from all sectors." Justin Kingdom of CNC Property Fund Management said: "We are delighted to secure the letting to such a prestigious tenant and are confident that Clarence House will continue to attract local and national businesses.". Back
to South West Features October 2009 Latest News: For all the latest South Wales property news visit our regularly updated news and deals section. For all the latest available commercial property visit our Property Search facility. Commercial property jobs:For more information on the
latest job vacancies
and careers news in South Wales, in the commercial property market and
beyond, visit our careers centre.
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