Partner Article

G9 Sentiment Survey

There is continuing concern over the region’s position on the global inward investment stage with a survey of the G9 group of commercial chartered surveyors showing an average performance score across nine interviews of only 1.33 per response out of a possible top mark of 5, just over 26% out of a possible 100%.

The annual survey, the third carried out in conjunction with The Journal, covers the region’s leading firms and at senior partner level.

Explaining the low score, David Furniss, BNP Paribas Real Estate says “the region only registers at national or international level if it is presented as a single economic entity. The population/GVA statistics do not work for investors otherwise. Geography and political boundaries are getting in the way of this. Investors view Newcastle as a second tier regional city as a consequence”.

Kevan Carrick, JK Property Consultants adds: “ We are not marketing or promoting the region but steps are being taken to improve this though the partnership of the NELEP and LA7. The emergence of the proposed Combined Authority with an adopted North East Strategic Economic Plan which is in preparation should change this provided there is a single public private partnership to market the region more strongly and effectively“.

Bill Lynn, Storeys Edward Symmons, with reference to regional branding asks “ North East where? There is a lack of regional identity and driving home messages about the region’s strategic significance.“ Bill Naylor, Naylors, adds: “The private sector is utterly confused by the fragmentation of the message from the public sector as far as inward investment for our region is concerned.”

With regional branding of the utmost importance 2014 will be a pivotal year with the region’s Combined Authority being formed. G9 is concerned by branding which presently suggests a North East International approach and not a Newcastle City Region brand that would complement other UK city regions.

Gavin Black, G9 chairman, says there is concern about North East International or Invest North East as they beg the question, “North East of where?” “It is not strong enough and if we follow this route the branding exercise will be diluted by having to say which ‘North East’ is being referred to.” He also warns that the funding of new development remains a potential problem given the level of inducements currently being sought and market rental levels.

The survey also looked into the sentiment for 2014 covering weakest and strongest sectors. The majority say retail will continue to struggle with industrials continuing to be the strongest.

Darron Barker, Lambert Smith Hampton, says manufacturing in our area is a strong sector. “In relative terms, occupational costs are low as compared to other regions. Nissan, Hitachi etc have supply sector spin offs. The marine and renewable energy sectors are good news. I think this sector is battle hardened. “

Tim Evans, head of Knight Frank’s Newcastle office, says he is full of confidence following on from a much improved office market in 2013 “saying that this will be sustained” during 2014 “with increased demand delivering a significant improvement in the market with much better returns for investors”.

G9 also looked at the region’s strengths and weaknesses. Tony Hordon, DTZ, says the North East’s strengths are competitive occupational costs, attractive demographics, a skilled workforce, an excellent work-life balance. Weaknesses however remain such as “the scale and fragility of the local economy, the low levels of available stock levels, a weak inward investment vehicle and a lack of co-ordination between local authorities which remains our biggest threat when faced with other more organised regions.”

Tony Wordsworth, GVA, says G9 believes it needs to maintain momentum as the issues of investment, funding, strategic sites and competition from other regions, including Scotland, “will not go away”. “We need therefore to enter the fray and continue to argue our case on all areas that are important to the region. The name of G9 is being understood within the business community for its aims and objectives. Our messages are spreading successfully.”

G9 comprises BNP Paribas Real Estate, DTZ, Gavin Black & Partners, GVA, Knight Frank, Lambert Smith Hampton, Naylors Chartered Surveyors, Sanderson Weatherall, Storeys Edward Symmons, J K Property Consultants.

This was posted in Bdaily's Members' News section by Chris Dobson .