Damian Cook: Devon's Commercial Property Market

The first quarter of 2015 has seen improved confidence resulting in an increase in activity within the commercial property market throughout Devon. Exeter in particular is experiencing substantial growth and has become the South West’s most vibrant commercial hub.

Demand for both industrial and business space remains healthy with agents experiencing a shortage of current supply, which has not been helped with the lack of new development over the past seven years or so due to the challenging marketing conditions during the recession.

This will be eased with the future development of Exeter Science Park and the nearby Skypark next to J29 of the M5, although with little physically under construction these locations will not bring new supply online this year.

Retail trends are changing with the impact of the internet and online sales and so the High Street is adapting to this by providing a shopping experience with a surge in national retail chains seeking and securing a position in the city centre. The variety of places to eat for both shoppers and workers is now vast with the likes of Wagamama, Loungers/Cosy Club, ASK, YO! Sushi, Carluccio’s, Byron Burger and the recent opening of Jamie Oliver’s Italian in Princesshay Exeter.

An ambitious vision to deliver a unique dining destination in the Exeter Guildhall shopping centre will provide artisan restaurateurs with the prefect space to offer even more choice providing 13 more outlets.

The Royal William Yard in Plymouth has for some time been a popular destination for food and leisure with independent and national restaurant operators including River Cottage, Bistro Pierre, Prezzo and there’s more to come.

More good news for Plymouth is the sale of the Civic Centre to Urban Splash. Although no plans have been made as of yet, the 15-storey Grade II listed building is ripe for a mixed commercial, leisure and residential development.

Developers have been taking advantage of recent changes in permitted development rights which allow offices - except for listed buildings - to be converted into residential accommodation without the need for planning consent. Some 60,000 sq ft in Exeter’s central business district of Southernhay within five modern office buildings are currently being converted into luxury flats for sale and to rent to satisfy the ever increasing demand for city centre living.

In Plymouth where the end values are not so viable, developers are carrying out a similar exercise for student accommodation with the recent sale of Royal Buildings at St Andrew’s Cross.

The expansion of residential accommodation within Exeter and Plymouth city centres is following the trends of larger UK cities and it is yet to be seen what the impact will be on the office sector and whether we see more out of town schemes for the larger occupiers of space.

Occupiers within all the commercial property sectors are starting to look again at securing new premises as the economy improves and business in Devon begins to look healthy again.

• Damian Cook, MRICS, is a Director at Stratton Creber Commercial in Exeter.