A shortage of suitable property in both the office and industrial sectors could provide some market stimulus, but any significant recovery remains some way off
Gloucester
Peter Foyle, Bruton Knowles
When will there be a recovery?
“There have been no new major office developments for a few years, and much of what is on the market is poor quality. As a result, we are seeing keen interest in the grade A and better quality space that is available, including the offices in Cheltenham’s Ellenborough House”
What are the office market prospects?
“In Gloucester, the demand for space over the past 12 months has been limited, with increased incentives offered to attract tenants and maintain headline rents, which are at least 20% lower than in Cheltenham. Office rents in Cheltenham have not changed in the past 12 months and achieve levels of up to £14 per sq ft for good-quality space.”
What will be the market highlight next year?
“The outlook for 2012 is very positive, as demonstrated by the level of development in the pipeline. Commercial property, particularly in Cheltenham, Gloucester, Tewkesbury and Cirencester, has weathered the economic recession better than the rest of the county thanks to the relative wealth of the surrounding catchment areas.”
Bristol
Chris Grazier, Alder King
When will there be a recovery?
“We’re seeing signs of increased activity in the north Bristol market. Central Bristol has slowed but is steady and the shortage of grade A stock will lead to an increase in prelet activity to boost take-up.”
What are the office market prospects?
“We are expecting things to improve gradually over the next 12 months but don’t expect a sharp upturn. Almost all enquiries are driven by lease events, not expansion plans, so there only has to be a slight improvement in business confidence to increase take-up of office space quickly.”
What will be the market highlight next year?
“Phase One Finzels Reach is much anticipated and helps cement the Templeback/Counterslip area as the prime central office location. We also hope to see CBRE’s 50,000 sq ft requirement land in Bristol.”
Truro
Neil Stubbs, Vickery Holman
When will there be a recovery?
“There is still a healthy level of movement in the market, but clearly at a reduced rental level. We don’t anticipate any significant improvement in the market until at least 2013/14.”
What are the office market prospects?
“The best we can hope for in the next couple of years is to see rents back in double figures. However, we still anticipate a long wait before rents are back to their peak of £14.50 per sq ft.”
What will be the market highlight next year?
“We have three buildings under offer totalling 19,400 sq ft at Threemilestone. There is another 16,000 sq ft available and we anticipate that most of the offices available in this location will be let in 2012.”
Exeter
Ralph Collison, Alder King
When will there be a recovery?
“Exeter has been fortunate not to have a massive oversupply of speculative office space and there are several buildings under offer, such as Revolution at Pynes Hill, the remainder of The Senate in the city centre and Horizon House, Exeter Business Park. Any recovery in the foreseeable future will come in the form of bespoke office requirements for new-build, either as part of a city centre mixed-use scheme, from existing companies expanding at Exeter Business Park, or in new locations such as Skypark.”
What are the office market prospects?
“The gradual take-up of existing stock will start to put pressure on rents, which are competitive on a regional comparison basis. There are businesses that will need or want to be in Exeter and that will be prepared to pay a market rent for quality new accommodation.”
What will be the market highlight next year?
“The growth point to the east of Exeter – to include Skypark, which can offer up to 1,400,000 sq ft – will be fully on stream and there are several major proposals, such as the bus station site and St David’s station, in the city centre.”
Mark Potter, Vickery Holman
When will there be a recovery?
“The earliest we anticipate seeing a noticeable recovery in the office sector in Plymouth is 2013/2014. The office market will continue to ‘bounce along the bottom’ for the next 12 to 24 months.”
What are the office market prospects?
“Good quality office stock in Plymouth, in the right location, will continue to be in short supply during 2012 and will therefore be in demand. There will continue to be an oversupply of lower quality office accommodation in Plymouth, especially in and around the city centre.
“The percentage of office space uptake when compared with available office space in Plymouth has remained somewhat constant during 2010 and 2011, and this is likely to be the case in 2012. 2012 will continue to be a tenant/buyers’ market, with incentives and flexible lease terms needed in order to secure tenants.”
What will be the market highlight next year?
“Any transaction relating to good quality office space in excess of 7,500 sq ft (to a good covenant tenant) and with a lease term in excess of three years will no doubt be a highlight in the office market sector in Plymouth.”
Gloucester
Paul Hobbs, GVA
When will there be a recovery? “2014”
What are the industrial market prospects?
“Possibly slower recovery due to a continued reliance on manufacturing rather than distribution-related demand.”
What will be the market highlight next year?
“We are all watching Supergroup to see if its new-build 400,000 sq ft distribution requirement finally lands in Gloucester after much debate.”
Bristol
Tim Davies, Colliers International
When will there be a recovery?
“Any recovery is dependent on an economic recovery and most analysts are predicting this could be two years away.”
What are the industrial market prospects?
“The South West, and Bristol in particular, has its own micro-market. There has been a lack of speculative development, which means rental levels are holding firm because of this undersupply.”
What will be the market highlight next year?
“Given the pattern of big shed development over the past five years, for instance B&Q, Tesco, Morrisons and the Co-op, I think there will be at least one big shed built in the South West next year.”
Swindon
Paul Hobbs, GVA
When will there be a recovery?
“Late 2012-2013”
What are the industrial market prospects?
“There is evidence of recovery in the western corridor and solid rents (£14 per sq ft-plus at Heathrow), might perhaps push enquiries further westwards along the M4. Swindon’s fortunes are somewhat based on Honda’s trading, but it is a location that has bounced back fast with such deals as B&Q’s 850,000 sq ft RDC at South Marston.”
What will be the market highlight next year?
“I think that Graftongate might pull a phoenix out of the flames with a prelet/presale deal on its Ecco Swindon site (ex Woolworths Dorcan), rewarding a really brave stance from UBS in pulling down the redundant stock on the site good luck guys.”
Exeter
Ralph Collison, Alder King
When will there be a recovery?
“It is already under way in the industrial/warehouse sector. With a relatively low stock level and identified demand, we will see more design-and-build on site, specifically in the 10,000-50,000 sq ft range. Smaller units that are not well located may still struggle.”
What are the industrial market prospects?
“With good land availability at Skypark, Hill Barton and Matford, we will see more new-build under way, but not speculative development. Exeter will continue to grow in strength as a regional base and it is hoped spin-off from this will benefit outlying areas.”
What will be the market highlight next year?
“The 500,000 sq ft Sainsbury’s distribution depot should be on site at the IMRFT and this will increase focus on the Exeter Gateway, which includes Skypark The Science Park and Cranbrook new town.”
Bristol
Tim Davies, Colliers International
When will there be a recovery?
“Any recovery is dependent on an economic recovery and most analysts are predicting this could be two years away.”
What are the industrial market prospects?
“The South West, and Bristol in particular, has its own micro-market. There has been a lack of speculative development, which means rental levels are holding firm because of this undersupply.”
What will be the market highlight next year?
“Given the pattern of big shed development over the past five years, for instance B&Q, Tesco, Morrisons and the Co-op, I think there will be at least one big shed built in the South West next year.”
Exeter
Ralph Collison, Alder King
When will there be a recovery?
“Exeter has been fortunate not to have a massive oversupply of speculative office space and there are several buildings under offer, such as Revolution at Pynes Hill, the remainder of The Senate in the city centre and Horizon House, Exeter Business Park. Any recovery in the foreseeable future will come in the form of bespoke office requirements for new-build, either as part of a city centre mixed-use scheme, from existing companies expanding at Exeter Business Park, or in new locations such as Skypark.”
What are the office market prospects?
“The gradual take-up of existing stock will start to put pressure on rents, which are competitive on a regional comparison basis. There are businesses that will need or want to be in Exeter and that will be prepared to pay a market rent for quality new accommodation.”
What will be the market highlight next year?
“The growth point to the east of Exeter – to include Skypark, which can offer up to 1,400,000 sq ft – will be fully on stream and there are several major proposals, such as the bus station site and St David’s station, in the city centre.”
Gloucester
Peter Foyle, Bruton Knowles
When will there be a recovery?
“There have been no new major office developments for a few years, and much of what is on the market is poor quality. As a result, we are seeing keen interest in the grade A and better quality space that is available, including the offices in Cheltenham’s Ellenborough House”
What are the office market prospects?
“In Gloucester, the demand for space over the past 12 months has been limited, with increased incentives offered to attract tenants and maintain headline rents, which are at least 20% lower than in Cheltenham. Office rents in Cheltenham have not changed in the past 12 months and achieve levels of up to £14 per sq ft for good-quality space.”
What will be the market highlight next year?
“The outlook for 2012 is very positive, as demonstrated by the level of development in the pipeline. Commercial property, particularly in Cheltenham, Gloucester, Tewkesbury and Cirencester, has weathered the economic recession better than the rest of the county thanks to the relative wealth of the surrounding catchment areas.”
Exeter
Ralph Collison, Alder King
When will there be a recovery?
“It is already under way in the industrial/warehouse sector. With a relatively low stock level and identified demand, we will see more design-and-build on site, specifically in the 10,000-50,000 sq ft range. Smaller units that are not well located may still struggle.”
What are the industrial market prospects?
“With good land availability at Skypark, Hill Barton and Matford, we will see more new-build under way, but not speculative development. Exeter will continue to grow in strength as a regional base and it is hoped spin-off from this will benefit outlying areas.”
What will be the market highlight next year?
“The 500,000 sq ft Sainsbury’s distribution depot should be on site at the IMRFT and this will increase focus on the Exeter Gateway, which includes Skypark The Science Park and Cranbrook new town.”
Mark Potter, Vickery Holman
When will there be a recovery?
“The earliest we anticipate seeing a noticeable recovery in the office sector in Plymouth is 2013/2014. The office market will continue to ‘bounce along the bottom’ for the next 12 to 24 months.”
What are the office market prospects?
“Good quality office stock in Plymouth, in the right location, will continue to be in short supply during 2012 and will therefore be in demand. There will continue to be an oversupply of lower quality office accommodation in Plymouth, especially in and around the city centre.
“The percentage of office space uptake when compared with available office space in Plymouth has remained somewhat constant during 2010 and 2011, and this is likely to be the case in 2012. 2012 will continue to be a tenant/buyers’ market, with incentives and flexible lease terms needed in order to secure tenants.”
What will be the market highlight next year?
“Any transaction relating to good quality office space in excess of 7,500 sq ft (to a good covenant tenant) and with a lease term in excess of three years will no doubt be a highlight in the office market sector in Plymouth.”
Swindon
Paul Hobbs, GVA
When will there be a recovery?
“Late 2012-2013”
What are the industrial market prospects?
“There is evidence of recovery in the western corridor and solid rents (£14 per sq ft-plus at Heathrow), might perhaps push enquiries further westwards along the M4. Swindon’s fortunes are somewhat based on Honda’s trading, but it is a location that has bounced back fast with such deals as B&Q’s 850,000 sq ft RDC at South Marston.”
What will be the market highlight next year?
“I think that Graftongate might pull a phoenix out of the flames with a prelet/presale deal on its Ecco Swindon site (ex Woolworths Dorcan), rewarding a really brave stance from UBS in pulling down the redundant stock on the site good luck guys.”
Gloucester
Paul Hobbs, GVA
When will there be a recovery? “2014”
What are the industrial market prospects?
“Possibly slower recovery due to a continued reliance on manufacturing rather than distribution-related demand.”
What will be the market highlight next year?
“We are all watching Supergroup to see if its new-build 400,000 sq ft distribution requirement finally lands in Gloucester after much debate.”
