The opening of a prominent office building in Swansea has been delayed, garnering attention from potential tenants and local officials.
- Additional construction work and unforeseen issues have pushed back the completion date of the 71/72 The Kingsway project.
- Potential tenants have expressed significant interest, with 70% of the building’s space already under provisional agreement.
- The Swansea Council has allocated significant investment to the project, with substantial support from the Swansea Bay City Deal.
- Swansea’s office rental market is seeing strong growth, with new developments positioned to attract business interest.
The much-anticipated opening of the flagship office building, 71/72 The Kingsway, has been postponed. Cllr Rob Stewart, leader of Swansea Council, has clarified the reasons for the delay, following interest from potential tenants and inquiries from local officials. The initial completion date at the end of March was postponed to early August due to necessary additional works and unexpected damage to cables at the rear lane of the building.
Cllr Stewart mentioned that damaged cables, which were disconnected from street lights, were identified and rectified only after the project commenced. This discovery led to a revision in the construction timeline. The council aims to provide high-quality office space amidst a noted shortage in Swansea, with the new development capable of accommodating approximately 600 workers.
The building occupies a site formerly home to the Oceana nightclub, and despite setbacks, 70% of its space has been reserved through heads of terms agreements with potential tenants. These tenants are expected to begin their specific fit-out activities before year-end, once lease agreements are concluded.
Financial backing for the project includes a substantial £24.6 million investment from the Swansea Council and an additional £13.7 million from the central government via the Swansea Bay City Deal. This deal is designed to stimulate economic growth and foster public and private sector collaboration within the region.
Swansea is experiencing a surge in office rental growth. According to a commercial property consultancy, the city has one of the lowest office vacancy rates in the UK, standing at 3.5%. In contrast, Cardiff’s vacancy rate is more than double. New developments, including the Kingsway project and the refurbished Palace Theatre, are key components of Swansea’s evolving business landscape.
The delivery of new office space in Swansea’s central business district is expected to attract local businesses eager to secure their presence in the city. With the backing of the Swansea Bay City Deal, further private investments in the city centre, such as new flats and office buildings, are anticipated.
The flagship office project at 71/72 The Kingsway marks a significant step in Swansea’s bid to enhance its business environment and stimulate economic growth.
