‘Government must not
THE Welsh Government needs to “open up” more to the private sector on its strategy to bring new investment and jobs into Wales, believes Rhys James, a leading figure in the commercial property sector.
However, the partner and head of the Cardiff office of international property advisory firm Cushman & Wakefield said the outlook for the commercial property sector, particularly in Cardiff, is bright.
Speaking at Cushman & Wakefield’s Cardiff Property Outlook 2017 event, Mr James said: “There doesn’t appear to be too much co-operation or joint initiatives between Welsh Government and local authorities, while there is certainly very little linkage into the private sector.
“Whatever the Welsh Government are doing appears to be happening behind closed doors.
“It will be good to have a more clearly defined and inclusive strategy – one which the property industry can relate to and contribute to.”
He added: “With next month’s General Election and then Brexit negotiations, it is inevitable that there will continue to be a degree of uncertainty and some hesitation in the markets until there is greater clarity as to where the UK is heading and to what time-scale.”
However, Mr James said there “was plenty to look forward” in south Wales in the short and medium term futures.
He added: “There is clear momentum in a number of different sectors of the regional property market.
“But we must try to harness the influence, the expertise and the experience of both the public and private sectors, and getting the Welsh Government and local authorities to work more closely with the private sector to attract new businesses, new jobs and further investment into Wales.”
Mr James said that significant oppor- tunities would present themselves to the regional property market during the next 18 months, including the proposed Central Quay scheme on the site of the curent SA Brain & Co operation immediately south of Cardiff Central Train Station, that would see more than two million sq ft of office, residential and leisure space built. Record year
Cushman & Wakefield said that 2016 saw a record annual take-up of office space in Cardiff at 685,000 sq ft – a 10% increase on the 616,000 sq ft let in 2015 and with the average annual take-up rising to 524,000 sq ft per annum over the past six years.
Some 70% of all transactions by floor area in Cardiff happened in the city centre, with out-of-town and Cardiff Bay locations again struggling to attract serious tenant interest.
Hugh James Solicitors taking 100,000 sq ft at Two Central Square and Motonovo Finance taking 71,500 sq ft at One Central Square were the two largest lettings for 2016.
However, it said that the current availability of grade A offices in Cardiff city centre is limited to about 100,000 sq ft in five separate buildings.
It added that new speculative development being undertaken by Rightacres at One Canal Parade and at Capital Quarter from developer JR Smart should let well in the next nine months at rents of up to £22 per sq ft.
Mr James said: “The joint venture development at Central Square between property development firm Rightacres and Cardiff City Council goes from strength to strength.
“As well as those buildings which are already completed or being constructed, the Interchange building on the eastern side of Central Square could well be started in early 2018.”
The 400,000 sq ft project will include retailing overlooking Central Square, a bus station, access from Saunders Road to the rear, two decks of car-parking and a concourse at the first and second floors and with buildings for apartments and offices.
The north side of Central Square could potentially see 270,000 sq ft of new offices constructed for the Government Property Unit, although no legal commitment has been made yet. And with an additional phase of 180,000 sq ft of offices there, it would bring the whole of the Central Square scheme to 1.3 million sq ft.
The new offices for the GPU are understood to be for a new HMRC headquarters in Wales
Mr James said: “As Rightacres put the final pieces of that jigsaw together [Central Square], it would be pleasing if Network Rail could be persuaded to make an equally significant contribution by committing to the upgrading and expansion of the Central Station concourse.” Industrial market
In the industrial market, Cushman & Wakefield says there remains a lack of good-quality stock available in south Wales – with little if any speculative new development of medium or largersized buildings being undertaken and an absence of well-located “oven-ready” development sites.
It said that south Wales has lost out significantly in recent years to Avonmouth, where over two million sq ft of new warehouse projects have been committed in the past 18 months.
Mr James said: “This is where