Experts estimate commercial property values in Preston have plummeted by up to 40% in the past 18 months, leaving building work unviable for most developers.

In recent years developers have been given the go-ahead to build dozens of homes, offices and shops across the city, but many have failed to even get out of the starting blocks.

City architect David Cox said stalled projects were "queued up like a motorway traffic jam".

The biggest development on ice is the £50m hotel and office development on the corner of Ringway and Corporation Street.

Tenants including Sleepmasters and Maplins moved out last year as plans for the 13-storey block were given the green light.

But today, with no immediate plans for Ireland-based developers McAleer and Rushe to start work, it emerged the two empty units are in the process of being transformed into a new furniture store, due to open early in the New Year.

Meanwhile, there are no immediate plans to start development on the corner of Oliver's Place and Eastway in Fulwood after plans for an £8m office building, nicknamed 'The Hedgehog', were approved in March.

Another development yet to get off the ground is the former Goss Graphic Systems complex in Greenbank Street, Plungington, which is still up for sale with planning permission for 208 apartments, 87 family homes and 281 student bedrooms.

Earlier plans also included Booths depot, Queen Street, where planning permission for an £80m 18-storey block of 605 flats was granted in 2007. The site has recently been cleared but council planners said they knew of no intentions to start building work.

'Overly optimistic'

In addition, revised plans from Brookhouse Group will go to council planners on Monday for a supermarket, shops, a hotel and multi-storey car park after more than six years of work at Horrockses Quarter.

Roger Parker from commercial estate agents Parker and Company, based in Ribblesdale Place, said: "The motive behind all commercial property development is profit. A developer needs to anticipate a profit before he embarks on a project.

"All commercial property values have collapsed by at least 40% over the last 12 to 18 months and, because end values do not show a profit, all sensible developers have shelved developments.

"Even if they wanted to go ahead banks will not lend on projects which will lose money.

"A further consideration is that some property developers are overly optimistic and work hard to prepare schemes which will never see the light of day even without the recession."

Eric Bell, marketing manager at Goss Graphics, confirmed the site remained on the market but said: "In the current climate, interest is limited."

'Missed the boat'

Many projects were put on hold or cancelled altogether due to the Tithebarn plans for a John Lewis department store, plus dozens of other shops, reinvigorated markets and a new bus station.

This came to a head last year when a government inspector threw out plans for a £10m office and apartment development on the corner of Rose Street and Shepherd Street.

The landmark decision effectively put the brakes on any building work within the 30-acre site before the £700m scheme.

Many property experts privately believe Preston has "missed the boat".

In the meantime, landlords are being left with hefty bills to run empty buildings.

Lorraine Norris, chief executive of Preston Council, admitted the council was "trying to bring forward development in a very difficult economic climate".

She added: "What's encouraging about Preston is, not withstanding the recession, you're beginning to see (development) activity again."

'Queued up

Preston will be "flooded with cranes" once the economy recovers, one expert has predicted.

The majority of building work in the city is currently on hold due to the economic climate but, with dozens of schemes already approved, work can start as soon as money is available.

David Cox, director of Preston-based architects Wood Associates, said: "We have several projects that have stopped after planning (permission was granted).

"They're more or less queued up; it's like a motorway traffic jam. Some day soon the banks will open up the roads again and Preston will be flooded with cranes.

"We kind of hope it will happen more gradually."

Read more on this story in the Lancashire Evening Post

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