The decision by EDF to proceed with the construction of UK’s first new nuclear plant has to be very positive news for the south west economy, in particular for the commercial property market. The £18 billion project will attract not only businesses directly involved in the construction of the new plant but also attract many more ancillary businesses who will all want to be located as close to the site as possible.
Bridgwater has in the past couple of years already witnessed a number of new tenants move in, availability fall and values increase, with investors who had previously dismissed the town as a location, now looking to buy. With the go ahead, the level of interest will only grow due to the size of this major project and the time it will take to complete. It will not be possible for the town to cater for the demand and we anticipate a ripple effect upon the market along the M5 corridor between Exeter and Bristol, with the biggest winners being Weston-super-Mare and Avonmouth/Severnside.
Simon Harvey, Industrial partner of Hartnell Taylor Cook LLP said: “The commercial market in Bridgwater and the surrounding area has a been preparing itself for the start of work on the scheme, but with so many delays no one was prepared to commit and it is now going to be like setting off the starting gun at the start of a race as companies try to secure themselves the best accommodation, but they may be disappointed with availability limited and therefore forced to widen their area of search. Locations such as Weston-super-Mare and Severnside will provide the solution and easily accessed along the motorway.”
The impact will not be restricted to the construction/manufacturing industry, the office market in Bristol has already seen EDF take 78,000 sq ft at Bridgwater House, Finzels Reach at the start of this year in anticipation of the scheme going ahead in what was Bristol’s biggest office letting this year. Chris Grazier, Hartnell Taylor Cook’s office partner reports a number of enquiries that have been on hold in the service sector waiting for the decision and it is anticipated these companies will give the northern fringe of Bristol and Weston-super-Mare a huge boost.
Chris Grazier said: “The diversity of employment opportunities in Somerset and the M5 corridor had been suffering but with the need for a reported 25,000 workers to fulfil this project, then the health of the area is looking strong for the future.”
