THE new engine room of the retail sector destined for the centre of the city of Newport has been given a welcome boost with news that two big hitters have confirmed they are set to be part of the Frairs Walk scheme, says Haydn Thomas, of Hutchings & Thomas Chartered Surveyors.
Next and Topshop are poised to join the anchor Debenhams and also Cineworld, at the eagerly awaited development. It’s also been announced that a number of restaurant chains – sadly no definite names yet- are also interested and keen to taking space.
And who can blame them with such a sparkling new retail centre on the horizon and Rodney parade just across the River Usk hosting Football League matches next term with Newport County as well as top class rugby next season with Newport Gwent Dragons.
Newport Retail Park, at Spytty, is getting busier and busier.  Marks and Spencer and the Gap outlet store are hot spots for shoppers as is Tesco and its smaller retail units. GM Music is on song since moving there and Gemmelli are also taking space to open a restaurant.
There has also been a great deal of leasehold interest in the recently vacated former Blockbuster unit on the park and at long last there is some intriguing and sustained interest in the former Megabowl site.
There is also keen interest in secondary retail space and there have been a number of both leasehold and freehold deals agreed recently although rents remain subdued.
There is no doubt that the construction cranes, there are now two, in the centre of the city helping with the construction of the new Admiral Insurance Headquarters, is whipping up interest in the centre. This may well be the reason for renewed interest in  Newport as a commercial, district from a number of different  quarters.
Admiral Insurance will be taking around 70,000 sq ft of office space in the office block adjacent to Newport’s main line railway station.
Notwithstanding all this optimism prime retail demand remains low and one is left with the feeling that steep rates and the aforementioned out of town retail not just in Spytty but Cwmbran and further afield, both to the east and west, may be to blame for the current situation.
The office sector is seeing an increase in the number of enquiries up to 2,000 sq ft although, as with retail, rents remain static. A green shoot is that interest in freehold office space appears to be increasing ever so slightly.
Industrial demand is fairly strong for units up to 5,000 sq ft in both Newport and also in the Gwent Valleys. Lately more enquiries have come across our desks from investors and developers in Newport with positive feedback on intentions for future investment and on the economy in general.  There is however still a lack of quality and new build industrial stock available in the circa 5, 000 sq ft. bracket.
So it is a bit of a curate’s egg appraisal good in parts. There are  positive signs, with regard to demand across most sectors, however we are not in any way out of the woods as yet with bank lending still low and general rents and values static  which , in consequence, leads to a lack of development of new properties across the sectors.
In terms of the general property sector, lenders are still procuring new valuations and re valuations for all property types. In many instances valuations are required as the assets held or in question, have not been valued for some considerable period of time.
While all lenders confirm their appetite to lend it appears that they remain constrained by internal dictats and that a borrower must submit a solid and compelling case for any lending to occur.