Demand for high quality units has been the driving force behind the south west logistics market as constraints on supply are being eased, according to Savills.
Supply of industrial space in the region has risen 41.6% to reach 2.03m sq ft (188,593sq m) notes the firm. This is predominantly made up of smaller units with 44% of available space being under 200,000sq ft (18,580 sq m) and no units above 400,000sq ft (37,161sq m) available. Of the stock on the market, 62% is Grade A space – a 32% increase on 2017 levels.
Savills says take up reached 995,106sq ft (92,448sq m) last year over five deals and all of these involved speculatively developed or build-to-suit units. The largest deal of 2018 was B&Q acquiring G Park Swindon, a built-to-suit unit totalling 375,286sq ft (34,865sq m).
There is a total of 416,520sq ft (38,695sq m) of stock being speculatively developed across three separate units. The largest being Access 18 where St Modwen are developing 151,330sq ft (14,059sq m) set to reach practical completion in Q1 2019.
Rob Cleeves, director in the industrial team at Savills Bristol, commented: “The industrial market in the South West has, in previous years, been severely under supplied and as such we have seen a real rise in build-to-suit and occupiers developing their own units. We are now seeing a swing the other way with supply standing looking in good shape to accommodate the continued levels of demand.”