Flagship £115m development 'two thirds empty'

Almost two thirds of office space in a £115.1m regeneration project was reported as empty during a progress review.

An update on Gloucester City Council's now fully operational The Forum, a flagship King's Quarter scheme in the city centre, was given to councillors on Monday.

It features a four-star hotel with nearly 400 car parking spaces and more than 106,000 sq ft (9,847 sqm) of office space - which developers Reef Group said was 35% let and 65% vacant.

However, the authority said The Forum "has delivered what it promised in scope and quality" and was completed within its approved budget, and the empty spaces may be due to changes in working since the Covid-19 pandemic.

Labour leader Terry Pullen said the scale of the "void" office space likely reflects wider changes in working patterns, adding Gloucester may have more office space than necessary.

"Generally, it's heading in the right direction, but the design and the concept of The Forum, going back to initial thinking, was pre-Covid," he added.

At the meeting, Pullen posed whether it would be more "realistic" to look at alternative use of the space, "given the culture we are in now?".

According to the Local Democracy Reporting Service, council officers acknowledged the market had changed but said steps had already been taken to adapt.

Head of place Andy Hearne said the flexible coworking space was a direct response to shifting demand, by offering shorter-term and more adaptable options.

"Yes there are vacancies but up until now, Gloucester has not had premium office space. The Forum is premium office space but it's at Gloucester rents," he added.

Hearne told councillors the next 18 months will be interesting for the office market as a whole, but advised against "looking at alternative uses for that space just yet".

Peter Langley-Smith, managing director of the council's development partners Reef, said the space was "on point for where the corporate demand will come from and where people will want to relocate".

"These buildings are absolutely market-leadingin terms of what they provide, whether that's from a flexibility, adaptability or sustainability perspective," he said.

Council leader Jeremy Hilton added the project was still delivered within budget despite unforeseen underground pipe issues and inflation due to the pandemic.

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