The South-West’s New Property Hot Spot

Written by Mike Nightingale Wednesday, 06 July 2011 08:27

Over the past 10 years the fortunes of Falmouth have risen to a point where it is now a major UK relocation destination. The towns shops are flourishing, its businesses growing and its hotels, guesthouses and B&Bs report a steady trade all year round.

We have facilitated many of the deals that have helped place internationally known brands into Falmouth. As such, our agency team has a unique insight into the reasons Falmouth's economy is staying buoyant and bucking the national trend.

Falmouth has always been a working Port. The docks employ 500 local people with A & P's turnover doubling in the last 15 years, which has trickled down into the local economy.

Then there is also the geography. Beautiful scenery, good beaches, public gardens and a wealth of history with Pendennis Castle and The National Maritime Museum. But if you ask Falmouth's leading business people what has been the biggest factor in the town's economy they will inevitably mention the Tremough University Campus.

Tremough College, which is part of the University of Falmouth and Exeter has a current student population of 4,000. As with staff, these students spend their money locally at a level of £6,000 per annum and each student attracts 12 person nights to the tourist accommodation sector, bringing visitors to the area all year round.

This is borne out in the hotel and leisure sector where, despite tough market conditions, sale prices have remained steady.

The influx of students and their visiting parents has also changed the demographic of the average consumer in Falmouth. If you walked down the main shopping thoroughfare 10 years ago you could expect to see established traditional family businesses, gift shops and low-end retailers, such as Peacocks and Cox's Hardware, at the main hub of the town on the Moor. Now your journey through Falmouth would be more likely to continue right down past Trago Mills to Discovery Quay - at the opposite end of town.

There you can find Rick Steins' Restaurant, specialist Delis and expensive sailing brand clothing shops edging the modern Events Square adjoining Falmouth Maritime Museum. A recent survey by a business magazine revealed that out of 700 towns in the UK, Falmouth, with a vacancy rate of just 4.5%, has the least amount of empty shops.

The university redevelopment has also caused a huge amount of confidence in the area. Businesses have linked up with Tremough to take advantage of the academic expertise. The college embeds 'live' projects from local companies into its courses and has a scheme where students are provided with premises to start their businesses in the hope that when they expand they will choose to stay in the area.

Church Street 2005	Church Street 2008	Church Street 2011

Falmouth Business Park was built by Priority Sites in 2003 at a cost of £4.8 million, anticipating the demand for high quality office space in Falmouth. Today the complex is 95% occupied by tenants who are all growing, local companies including e-mail marketing company Jarrang, Cornwall Marine Network, and Seasalt.

Robert McGuffie, Priority Sites' Senior Development Manager for the South-West said "we built the Business Park 3 years ago before the recession hit and Falmouth has weathered the storm phenomenally well. Businesses are willing to pay more to be based in this area. Even Truro has not been able to maintain rental levels of £12 per sq ft charged at Falmouth Business Park Offices.

As for the future of Falmouth, Tremough is set to expand further. By 2016 the number of students will have risen to 5,000. Staff and student spend in the local area should rise to over £20,000,000 and an expected 365 new jobs will be created.

For more information contact Miller Commercial on 01872 247000

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