Lambert Smith Hampton's M4 Corridor Report 'Moving Forward' shows that take-up of is exceeding supply of office accommodation in Newport.

Newport currently has approximately 250,000 sq ft of available offices, which represents about 12.5% of overall office stock. There is now a distinct lack of existing high quality accommodation both in the city centre and out of town.

The Junction 28 area of Newport has underlined its position as one of the most strategically well situated business park locations in south east Wales.

Following on from the announcement by the Office for National Statistics late in 2004 that it would be creating an additional 600 jobs at its existing location at Tredegar Park, HM Prison Service secured the 54,000 sq ft CS1000 building at Celtic Springs in September 2005.

The AWG/Broadhall Celtic Springs development received a further significant boost in October 2005 with a pre-let of CS2000, comprising 35,000 sq ft to Wales and West Utilities.

The development is due for completion in 2006.

However, buoyed by Newport,s recent success in attracting major inward investment in both the public and private sectors, the development pipeline is encouraging.

Claire Davies, associate director at Lambert Smith Hampton's Cardiff office, said: "AWG/Broadhall has released proposals to develop three speculative Grade A office buildings at Celtic Springs on plot CS3000. A planning application has been submitted to develop 110,000 sq ft, comprising one 50,000 sq ft and two 30,000 sq ft buildings. It is understood that the first 30,000 sq ft will be developed speculatively in 2006. "In the city centre, Usk House, comprising a 30,000 sq ft headquarter building, is being developed by the Bailey Group on George Street in a strategic position just to the south of the city centre. "In addition, Babcock & Brown has been selected by the WDA as its preferred developer for the WISP programme, which includes proposals for the development of a 48,000 sq ft buildings, also on George Street. "Out of town, Cardiff property company, Rombourne Ltd, has commenced construction of its new business park development at Langstone adjacent to Junction 24. The scheme will provide up to 85,000 sq ft high quality office space in 12 small to medium sized buildings ranging from approximately 2,500 to 15,000 sq ft, although larger units of up to 40,000 sq ft can be accommodated. "The first building is due for completion by mid-2006. "At 24/Severn, also at Langstone on Junction 24, Robert Hitchins has progressed the speculative development of a courtyard scheme comprising five units, two of which have been pre-sold. This leaves three units available on either leasehold or freehold terms ranging from approximately 3,000 to 12,000 sq ft."

LSH reports, headline rents out of town have increased to a new high of £15.00 per sq ft following the pre-let to Wales and West Utilities at CS2000.

The city centre has also experience rental growth due to a lack of Grade A stock. Headline rents of £12.00 per sq ft have been achieved at Clarence House.