The Business Exchange Bath & Somerset Issue 10: Winter 2018/19 | Page 36

COMMERCIAL PROPERTY
KEEPING BUSINESS IN BATH
Everyone knows offices and retails spaces have always been at a premium in Bath – but
with rising rents and rates, many firms are choosing to relocate to Bristol and beyond.
In the meantime, empty units are
blighting the historic city centre.
Ben Jones, commercial property
partner and head of Thrings’ Bath
office, says the shortage of modern
office space has also seen a hike
in rents, which reached £31 per
square foot this year.
Ben said:“The challenge the
city clearly faces is retaining those
businesses that are expanding
on the back of their success, and
Ben Jones, Thrings
in attracting new businesses,
competing hard with the offering down the road in Bristol.
“The situation is being further enhanced by the conversion
of listed office buildings into residential property across Bath,
and indeed the South West.
“Then there is the knock-on effect. One of Bath’s many
selling points is its rich retail and gastronomic offering
and this is supported by a strong business community in
the city. If that commercial hub shrinks, it will undoubtedly
impact on the city’s independent shops, boutiques and
vibrant restaurant scene. We are reminded, almost on a
daily basis, of the immense challenges facing retailers and
restaurateurs; Bath has historically proved very resilient, but
these challenges will only be enhanced if businesses are
forced to relocate from the city or opportunities to attract
strong new businesses into the city are missed because of
the lack of space.”
Poppy Powell, Cake Café
Poppy Powell, who owns four cafés in Bath in George Street,
Quiet Street and Pulteney Bridge, believes the problem lies
with private landlords charging high rents.
She said: “Although the council own a lot of property, in my
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THE BUSINESS EXCHANGE 2018
experience they’re quite fair in the rents they ask, whereas
from what I can gather from other shop owners, it’s quite
often the private landlords who just dictate how much they
want. So I don’t think there’s a great deal the council can do
about that.
“But if there was something they could do about the
business rates – I don’t know what rules are laid down by
the Government – but if there was more relief perhaps, that
would help. It’s the rates that are the major problem because
they can often be half again of what the rent is.”
Invest in Bath is Bath and North East Somerset (B&NES)
Council’s initiative, in partnership with Invest Bristol and
Bath, designed to support and encourage business growth
in the area.
Simon Martin, Programme
Director, Growth and Enterprise
at the council, agrees that while
Bath is an attractive location for
businesses, the acute shortage of
space is a major problem.
He said: “In the past five years,
the city has lost over 30,000 sq m
of business space to permitted
Simon Martin,
development rights, which allow
B&NES Council
changes of use from office to
residential to be carried out without the need for planning
permission and student accommodation.
“As a result, much former office space has been
converted, whilst a lack of development of modern office
accommodation means that available stock remains in high
demand, and any good quality supply is quickly absorbed.
Expanding companies wishing to stay in the city have become
increasingly restricted in their options, often being forced to
relocate to neighbouring centres such as Bristol, where there
is more choice for modern occupiers.
“Bath has also experienced an increased churn in retail
properties in the city, leading to a small increase in the
number of vacant properties. Closures have commonly been
due to businesses either relocating to alternative areas
within the city, or to national chains changing their business
models.
“Regrettably we have also seen the closure of some
smaller local independent businesses, due to a range of
differing factors. Whilst Bath’s rental and businesses rates
are comparatively high, this is due to the popularity of the
area and its relatively high footfall. It is worth noting that
even with the small increases in empty retail frontages, Bath
still has comparatively low vacancy rates and the majority
of the empty units are either under offer or are currently
undergoing renovations.”
Simon’s team are working with the Bath Independent
Traders group to find ways to reduce the number of empty
shops, and the new Local Plan, the draft of which will be
released next year, aims to set out a planning policy that it is
more supportive of the independent retail community.
Simon added: “The council has also recognised the need
to protect the remaining office accommodation in the city and
is developing local planning policy that will enable greater
control over the conversion of office space to residential
premises in future through an Article 4 Directive.
“We are also providing new grade A office stock in the city
through our flagship development in the Bath Enterprise
Zone, at Bath Quays. Bath Quays North and South will deliver
over 30,000 sq m of office accommodation and co-working
space in the heart of the city, which will provide much needed
accommodation for our growing local business community
and create a viable investment potential for businesses
looking to locate to the area. Our Enterprise Zone status also
offers business rates relief to relocating companies.”
Meanwhile, Ben Jones believes tech companies could hold
the key to a brighter future as they have been major players
in office take-up over the past year – but again, to compete
with tech-hub neighbours such as Bristol, Bath needs to
provide suitable premises.
“There have been success stories, of course, with the
redevelopment of 20 Manvers Street and the refurbishment
of Cambridge House on Henry Street – which has more
than 55 new offices over four floors - giving the Bath’s office
market a welcome shot in the arm,” he said.
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