Prime industrial rents in Bristol grew by +8.3 per cent in H1 2015 – one of the largest increases in Europe, according to the latest Industrial and Logistics Snapshot from global property advisers, Colliers International.
Bristol was high amongst the positively performing cities in the Western European markets. Edinburgh led the pack, reporting growth of +11.1 per cent and Glasgow and Manchester both reported +10 per cent increases in rental values. Other positive performers were Rotterdam at +7.9 per cent and Budapest with +6.5 per cent.
Conversely, Minsk in Belarus reported the biggest decline in prime rents in Europe in the first half of the year dropping -15.5 per cent in H1 2015; this was closely followed by Kiev in the Ukraine with a decline of -14.9 per cent and St Petersburg in Russia with a decline of -8.3 per cent.
Tim Davies, the Bristol-based Head of EMEA Industrial and Logistics, at Colliers International, said: “The industrial and logistics market in Europe continues to be characterised by constrained availability of high quality warehouse and distribution space.
“Despite this, prime logistics rents remained stable in the vast majority of markets in the first half of 2015. The supply of quality product remains limited in the UK, and this fact combined with increased demand, has led to a rise in rents across all locations for prime stock in H1 2015.”
He continued: “The UK continues to lead the way in terms of increased activity, but the rest of Europe is beginning to follow suit. All UK markets report increasing rental levels which reflects the fact that levels of supply are being eroded and occupational demand is increasing. Inevitably with funding more readily available speculative development will occur throughout the regions’ strongest locations.”
