Alder King’s mid-year report on the region’s commercial property market includes some encouraging signs for the sector in Cornwall.
Commenting on the findings in the Market Monitor Update, Tom Duncan, head of agency at Alder King in Truro, said: “Whilst businesses remain cautious about spending, demand in both the office and industrial markets has strengthened over the first half of 2013 and a downward trend in the level of supply is anticipated for well-located good quality accommodation.
“With the return of some design and build interest and an improving prospect of speculative development (both subject to the availability of grant funding), the market does appear to be moving in the right direction.”
The report notes that demand for offices across the south west was consistent with the latter part of 2012 with steady demand in central Truro.
Demand is focused on city centre accommodation, particularly for smaller, high quality space with parking. The best accommodation remains resilient to trends in the wider Cornwall market where incentives and shorter lease terms are more widely available and required in order to secure tenants.
In the industrial sector, regional demand for larger good quality units has remained steady but with limited speculative development has meant a limited supply of modern accommodation against a growing supply of poor out-dated accommodation.
Cornwall’s industrial market remains focused on sites within close proximity of the A30, although enquiry levels in the first half of the year have been inconsistent.
High street vacancy rates in Truro, which have been below the national average, have increased over the first half of the year. Schuh is the latest retailer to open in the city with a Zone A rent equating to close to £110 per sq ft. Out of town activity has been limited.
You can download the full report by clicking here.