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Sainsbury leaves big box up for grabs

The 352,000 sq ft big box Sainsbury depot at Bridgwater has returned to the market as demand for second-hand warehousing in the South West soars.

The Big Box 24 unit, close to junction 24 of the M5 motorway, will be empty from Q2 2022 as Sainsbury integrates the Argos distribution network into its existing structure.

“The last twelve months have seen challenges across all market sectors, but these changing conditions and a structural shift in how we are shopping have resulted in a continued demand for logistics and warehouse space across the UK. We are seeing record take-up this year within the sector with business confidence continuing to be robust,” said  Paul Hobbs, Director within the specialist national industrial team at Avison Young.

The site is close to to Europe’s largest construction site at Hinkley Point C, which is increased demand for local warehousing to crisis point.

The exceptional demand has significantly reduced supply of big box units to 22 million sq ft, enough for six months take-up at current rates of take-up.  This compares to 25 million sq ft at the end of 2020 and 31 million sq ft at the end of 2019.

Online retail sales continue at high levels and activity has been driven by e-commerce, whether from retailers directly or third-party logistics providers. The non-food retail sector accounted for 44% of H1 demand, with Amazon alone leasing 13 units totalling 5.4 million sq ft.

With a considerable amount of space under offer and there being no let-up in demand, supply levels are expected to fall further during the second half of the year.

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