There is a popular perception that the Cornish mining industry belongs to a distant era, an era of Poldark and smugglers’ caves and Daphne du Maurier characters being moody and gothic in period costume, but it is very much alive and well.
Gone are the vast open mines, but in their place are more environmentally sensitive operations which extract reserves of precious metals such as lithium for use in very modern applications like electric cars and mobile phones.
And this is emblematic of much of Cornwall: for all the natural beauty and old-world charm which pulls in an estimated 4.5m visitors a year, there is a very 21st century industrial and scientific spirit at play which has the potential to transform the county into one of the most high-tech centres in the country – so long as developers can ensure there is sufficient supply of stock to match this emerging demand.
It is a theme explored in some detail by Miller Commercial partner Tom Smith in the latest Voice of the Region podcast. Miller Commercial leads the way in the EG Radius On-Demand Rankings for Cornwall (see table below), and Smith is bullish about the potential of the county to transition beyond its renowned leisure economy to become a leader in areas such as marine and space engineering.
“The sky’s the limit,” says Smith. “Newquay Spaceport is a resource which is so under-utilised. It has one of the longest runways in Europe, which means that it’s perfectly placed to develop horizontal take-off for space travel, which is a hugely exciting sector and will bring with it all sorts of support services.”
He is aware that the scale of the aerospace industry will come as a surprise to many. “There are 55 space companies based in Cornwall already, and I suspect nobody knows that,” says Smith. “There is huge potential for new businesses to be down here, tapping into the infrastructure that’s already there.”
There are, of course, challenges to overcome. Cornwall has a solitary trunk road running from west to east and housing supply issues mean young families especially are struggling to find homes, while huge social problems have been created among large numbers of people left behind by 20th century deindustrialisation.
Following a bumper period for visitors during the coronavirus pandemic – something Smith acknowledges was a “blip” – it is leisure and tourism where he sees the most immediate uptake in activity, with significant investment already in place.
“Developers and owners are re-examining the leisure sites, the campsites, and really trying to maximise what planning will permit them, and that’s going for the high end of the market,” says Smith. “So you will probably see fewer traditional campsites, and you will see a growth in more static homes, lodges and glamping, where prices are premium and payback is significant.”
Cornwall at a glance
- Average achieved rent in 2021: £13.65 per sq ft
- Average yield: 7.29%
- Investment total: £37.8m
- Number of deals: 49
- Some 3.2m sq ft of space got the go-ahead in 2021, through 1,276 applications. The majority of space permitted was for residential development (1.3m sq ft), with industrial permissions totalling 630,000 sq ft. Some 2.3m sq ft of new space is expected to be delivered in 2022 across 223 schemes. Residential will comprise 764,280 sq ft of this and industrial 563,727 sq ft.
All figures have been sourced from EG Radius and are for the period 1 January 2021 to 31 December 2021, unless stated otherwise.
To send feedback, e-mail jim.larkin@eg.co.uk
