SOUTH Wales's commercial property market, especially in Gwent, remains buoyant and there are positive pros-pects ahead, according to James Perry, associate director of consultants Lambert Smith Hampton.

The unsettling feeling of a UK market slowdown has yet to be felt within South Wales as it offers the highest standards of accommodation and lifestyle, for what can be considered a comparatively low cost when compared to its nearby neighbours along the M4 corridor.

Historically the Cardiff office market has been characterised by relatively stable supply and demand, with take-up in 2001 totalling around 600,000 sq ft, a rise from 530,000 sq ft in 2000. In Swansea demand is rising, however stock levels are reducing, with no new schemes coming on line to replace let accommodation.

Newport has seen little improvement in levels of take-up, with the majority of demand coming from established professional occupiers.

Total stock in Cardiff is estimated at about 5.7 million sq ft and Swansea and Newport are estimated at about 1.7m sq ft each. There is a limited supply of Grade A office accommodation available within Cardiff, with no supply in Swansea or Newport.

Newport's out-of-town office market essentially comprises two schemes at M4 Junction 28 Cleppa Park and Junction 24 Langstone Park, both of which have seen activity during the course of 2001, including the following:

Developers AWG/Broad hall have committed to a first phase 60,000 sq ft speculative building at Cleppa Park, known as Celtic Springs.

Robert Hitchings has sold a 1.5 acre site at Cleppa Park, known as Cleppa 4, to Acorn Recruitment, for its new headquarters building.

Rombourne has acquired around six acres at Langstone Park for a new office village development.

There is still demand for lower-cost accommodation in and around Cardiff, dem-onstrated by the Hutchinson Telecom acquisition of the 50,000 sq ft BT building at Parc Nant Garw and the acquisition of further space within Hodge House by Conduit.

Over the past 24 months the impact of improved telecommunications has benefited South Wales, as companies looking to relocate look at the area as a realistic alternative to the more expensive towns and cities further east along the M4 corridor. In Newport, prime central buildings in the Goldtops area are achieving about £9 per square foot (psf), with out-of-town rental levels for refurbished accommodation around £11 psf. Quoted rentals for the speculative building being constructed at Celtic Springs are £15.50 psf.

Much of the available accommodation is of low quality and specification and is available at figures as low as £5-£6 psf.

*PICTURED: An artist's impression of the new offices being built on the outskirts of Newport.