Commercial property report

A new property report says that while the retail market in Cornwall is generating demand, the office and industrial sectors are struggling.

The analysis from Alder King Property Consultants reports that the office and industrial sectors have seen reduced activity in comparison to the first six months of 2010, with a smaller number of transactions completing.

Alder King notes that the office sector has been particularly quiet and the supply of modern and secondary stock is increasing. Good quality accommodation with car parking in Truro city centre remains relatively scarce, but outside the centre supply is rising, leading to increased incentives being offered.

The industrial sector has witnessed little change in supply and demand levels. However, development of new premises is planned, which will lead to the construction of new high quality industrial units.

Following the success of Phase 3 at Treleigh Industrial Estate in Redruth, Priority Sites is proposing a fourth phase of 30,000 sq ft. Elsewhere they are also planning to commence infrastructure works and a first phase of up to 30,000 sq ft at a new site at Quintrell Downs near Newquay. Both are seen as good signs for the local economy.

The retail market has seen demand in the stronger locations such as Truro and Falmouth. Where freeholds are available and occupier requirements can be identified, Alder King says it has seen strong investor interest.

Alder King associate Tom Duncan said: “The first half of 2011 witnessed continued caution in most sectors of the commercial property market in Cornwall. However there are some signs of optimism with the return of competitive interest for well priced freehold opportunities.

“With both investors and occupiers showing caution, the challenge in the current market is to identify and properly understand the demand that exists and to advise landlords/owners how they may realistically take advantage of that demand.

“Cornwall remains an attractive location for commercial investment with potential availability of grant funding and much improved communications networks.”