Industrial property rents rose by 8.3 per cent in Greater Bristol in the first half of 2017 – further evidence of the continued lack of supply in the region, according to commercial property consultant Knight Frank.
Russell Crofts, partner at Knight Frank in Bristol, said: “Two main factors are contributing to the acute lack of available industrial properties. The industrial property sector is undergoing a structural change because of the internet revolution, with enormous demand for modern premises well located to deliver online orders quickly and efficiently.
“Coupled with this has been the ongoing lack of new industrial construction. Some speculative development in the Bristol areas is at last underway and this will provide space for occupiers to move, with secondary growth set to follow. However, little of it has reached the market yet.”
St Modwen have completed construction of two units at Access 18, Avonmouth, providing 34,000 sq ft and 36,000 sq ft.
St Francis and Marcol are on track to deliver 360,000 sq ft of speculative B8 units during 2017 at Horizon 38 at Filton, while at the other end of the scale Rockburn are due to complete three units in Avonmouth of 10,000-12,500 sq ft.
He added that the Bristol rental increase of 8.3% was part of a consistent trend which dated back to the start of the economic recovery in 2015.
Prime headline rents per sq ft for industrial premises over 50,000 sq ft in the South West during the first half of 2017 were £7.00 in greater Bristol.
“Supply is now approaching critical levels,” he said. “Whilst those landlords investing in refurbishment are being well rewarded, there remains scope for more speculatively-built, traditional units in many locations.”
