The anticipated opening of Swansea’s notable office building, 71/72 The Kingsway, is delayed due to additional work and damage findings.
- Council Leader Rob Stewart highlighted the delay arose from unexpected additional work and damaged streetlight cables.
- Swansea Council has confirmed that 70% of the building’s space has tentative agreements with potential tenants.
- The development received significant financial backing, including a generous contribution from the City Deal initiative.
- Swansea’s office market sees substantial growth despite delays, with low vacancy rates and new developments.
The much-anticipated opening of Swansea’s flagship office scheme at 71/72 The Kingsway has hit a setback as completion is delayed. Council Leader Rob Stewart has drawn attention to the unforeseen circumstances that have led to this postponement. The initial ‘practical completion’ date was pushed from March 31 to early August due to additional construction requisites and the discovery of damaged cables on Picton Lane, impacting street lighting. Stewart elaborated that these issues were identified and rectified as they provided the most efficient way to prevent further delays.
Despite the setbacks, promising signs arise as Swansea Council reports that provisional agreements on the terms of tenancy have been established for 70% of the building. “We anticipate that once leases have been concluded, some tenants will commence their specific fit-out activities before the end of the year,” Stewart remarked. Such agreements indicate strong demand and interest even amidst project delays.
The financial muscle behind this development is substantial, with a total investment of £24.6 million. The Swansea Bay City Deal contributes £13.7 million, reflecting a significant commitment towards boosting economic growth in Swansea. This project aligns with broader efforts by the City Deal, including other major investments like the construction of Swansea Arena and a proposed hotel, turning the city center into a vibrant hub for business and leisure.
Office space in Swansea is witnessing a boom, with some of the highest office rental growth rates in the UK. Insights from CoStar reveal a striking office vacancy rate of just 3.5% in Swansea, markedly below Cardiff’s 8%. This tight market is invigorated further by new ventures, shedding light on Swansea’s growing importance as a business destination. The introduction of new spaces like the refurbished Palace Theatre and 71/72 The Kingsway enhances the attraction for local enterprises intending to establish a stable presence.
Overall, while delays in large-scale projects are not uncommon, Swansea’s flagship office scheme stands as a beacon for future developments. The strategic backing and robust demand underscore the city’s evolving economic landscape, suggesting promising prospects for tenants and the broader community.
The developments at 71/72 The Kingsway underscore Swansea’s growing economic stature despite temporary setbacks.
