Cautious Growth in demand set to continue

Written by Theresa Tyack Friday, 05 February 2010 09:36

Westcountry activity levels within the commercial sector of the property market have continued to strengthen over recent months, which to a degree, is bucking the national trend, with High Street retail demand continuing at a good level. Richard Gilbert, Associate Partner, reports that most sectors of the commercial property market are showing considerably increased levels of activity

The hospitality industry within the UK in general, has experienced a downturn in both bed occupancy levels and rack rates, with a number of the larger hotel groups struggling in a depressed market. However, the West Country seems to have once again bucked the trend and certainly the level of trade and advance bookings to date, for many, are on a par with last year, with hotels and guesthouses looking forward to solid activity during 2010.

Coastal hotel locations continue to attract considerable demand and two recent sales have included The Deauville Hotel (right) and Base Surf Lodge (below left), both located in Newquay. There continues to be further strong interest, primarily generated from out of county buyers who wish to secure hotels and guest houses within Cornwall, with Falmouth and St Ives being particular hot spots.

One continues to be amazed by the demand for catering establishments and clearly the County has benefited immensely from the media's unrelenting promotion of Cornwall as a "gourmet's paradise". This promotion has resulted in enabling many of these establishments to be able to trade throughout the year, which is certainly something that would not have been financially viable 20 years ago.

Leasehold interests have been particularly sought after, with two recent transactions being The Mackerel Sky Café which is situated in the heart of Penzance and Seagulls Tea Room (right) in Mevagissey.

The viability of convenience stores continues to be of concern; however, the independent operators, by retailing in groups under well-known trading banners, are able to provide comprehensively stocked stores offering goods at favourable prices and offering the general public extended trading hours.

There is, and will continue to be, a place for the sole trader in predominantly rural Cornwall, enabling village shops being well-placed to serve the local community. A recent transaction was the sale of Boscastle Newsagents (left) which was a very long-established and successful business situated in one of North Cornwall's most picturesque villages.

At the time of writing, we are one month into 2010, which by all accounts has the making of a busy season. For those wishing to acquire a business prior to the commencement of the forthcoming season, opportunities include in Falmouth, the 20-bedroom Lerryn Hotel (right), which has been placed on the market due to retirement plans, with offers being sought off a guide price of £895,000. In the catering sector, for those seeking an established and profitable restaurant, Hunky Dory, also in Falmouth is being offered off a guide price of £105,000 for the leasehold interest. Whilst for those seeking a fast food outlet, the Fat Fish Café (below) on the waterfront at Penzance is available, and is being offered with a new 15-year Lease.

For further information on any Cornish businesses for sale contact Richard Gilbert on 01872 247027

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