A Swindon office building looks set to be refurbished to meet spiralling demand for high-quality space in the town centre after being sold at auction.
Private investors snapped up Focal Point in Fleet Street for an estimated £1.5m. The 34,200 sq ft five-storey office is vacant following the relocation last year of long-standing tenant, specialist insurer Gallager Heath to refurbished space at Station Square, the office block near Swindon railway station. 
The sale of Focal Point, pictured, is the latest in a string of office deals and upgrades in Swindon town centre as the recovery in commercial property market takes hold and the benefits of electrification of the main railway line to London begin to be felt.
Bradley Forbes of Swindon property agents Loveday, joint auctioneers in the sale of Focal Point, said the new owners, who have not been named, had secured the property at a “pivotal time in the office market in Swindon”. He said their investment, made well above the guide price, would most likely pay off.
“Our research indicates that rents will continue on an upward curve for the foreseeable future and improved rail services will have a dramatic and positive effect on the local market for offices going forward,” he added.
“Coupled with dwindling availability we are finally seeing the office market regain some forward momentum.”
Research released by Lovedays recently shows total office take-up in Swindon last year reached 215,000 sq ft in 61 transactions – a significant increase on the previous year’s 43 deals and the strongest activity for six years. In 2011 the total take-up was just 80,000 sq ft.
Increased demand a lack of new building means available space is now around 750,000 sq ft against a peak of 1.07m sq ft in 2011.
And with an increasing number of outdated 1970s and 1980s office schemes being converted for residential use this figure is expected to reduce significantly this year.
However, developers in Swindon – in line with most other regional towns and cities – have so far not been tempted to build speculative office schemes.
“But as rents continue on a relatively steep upward curve this stage of the property cycle moves ever closer,” added Mr Forbes.
The lack of good quality stock pushed up rents by between 10-20% last year to £16 per sq ft. Rents for grade A town centre space are now being quoted at a record £18.50 per sq ft with rent-free periods and other inducements now becoming rare, said Mr Forbes.
