Filling the gaps: understanding how small businesses source property in Wales’ town centres

Property preferences

The majority of businesses surveyed preferred high street locations. Offices and workshops were in higher demand than retail spaces. Main considerations for location choice included accessibility, cost and tenancy conditions.

Property sourcing challenges

Of those surveyed who had recently relocated, 93% of businesses found premises within six months. 

Of those businesses surveyed who were still searching for a premises, 40% had been looking for more than six months. 

Many properties appeared vacant but were tied up in long-term leases or lacked clear landlord contact information. High rental prices, conveyancing costs and business rates acted as deterrents for small businesses in taking on new premises. Businesses often struggled to identify suitable premises due to a lack of information about available premises. 

Support services (non-financial)

Of those surveyed, 74% of recently relocated businesses were aware of Business Wales but did not access support. Local authority and Business Improvement District (BID) support provided the highest rate of support, though awareness varied. Development Bank of Wales and Cwmpas had higher rates of unsuccessful applications, indicating a potential mismatch in service offerings.

Support services (financial)

Some businesses searching for premises were unaware of main funding programs. Despite availability, many small businesses did not apply for financial assistance due to complex processes or eligibility concerns.

Place leadership and collaboration

Areas with strong collaboration between local authorities, BIDs and business networks saw better outcomes in reducing vacancies. Effective place leadership requires dedicated funding and staff support. Short-term tenancy models (like pop-ups) were effective in demonstrating business viability and building landlord confidence.