Commercial Property Units in South Wales Readily Available
The recent RICS Commercial Market survey reported an increase in the number of empty commercial premises in Wales in the second quarter of 2011. 12% more Welsh surveyors reported rises rather than falls in available floor space, as fewer companies looked for space due to the economic downturn. However, Dan Smith, director of M4 Property Consultants says it isn’t necessarily bad news for all businesses.
“In the current market the supply of commercial premises is greater than the demand for them. Landlords and commercial property agents are having to work harder to find tenants, incentivise them to let their premises and assist them during this difficult period.”
He continued, “Businesses looking to rent premises for the first time or those looking to relocate or expand have a much better choice available to them. They can take advantage of the attractive terms on offer including flexible licence / lease agreements, rent free periods, more regular break options and much greater lease flexibility. It is a ‘tenants’ market and there are real benefits to businesses. We are seeing a number of savvy business owners take advantage of the current market and securing commercial property at low rates which will be of significant benefit in the long term”
First Investments, the owners of Springvale Industrial Estate in Cwmbran and Severnbridge Industrial estate in Caldicot are offering a range of these incentives to encourage tenants onto the estate. Six month licences are available or rent free periods for those willing to commit for the longer term. Tyres2Fit and EM-Z Edible Oils were both offered flexible packages suitable for their businesses when they decided to rent premises and the flexible terms have been of benefit to them.
Retail units around the entrance to the Kingsway Shopping Centre in Newport are available on flexible agreements with discounted rents.
Specialist dress shop Primadonna, moved into one of these units twelve months ago. The flexible lease terms secured enabled owner Melanie Bishop to inject additional investment into her business, test the market and subsequently extend the range of prom dresses she imports from the U.S. The business has now expanded into wedding wear for both brides and grooms and Melanie is now committing to a longer term lease. .
Concluding, Dan comments, “It’s definitely a tenant’s market at the current time. However, demand will increase in the future as the economy bottoms out and starts to grow again. With current opportunities, now could be the perfect opportunity for local businesses to secure the commercial property that will help them drive their business forward in the next few years. Businesses should consider if now is the right time to secure that first property or relocate, depending on their current situation and should take advice from their professional team of accountants and surveyors.
