Bristol has set a new national record for large industrial building rents outside the South East, following the leasing of a unit on the Horizon 38 development at Filton.
Russell Crofts, head of the Industrial & Logistics division of Knight Frank in Bristol, says the leasing of the 115,000 sq ft Unit G2 by Apec Braking of Yate at a reported rental of £7.25 per sq ft is the highest rental achieved for any large industrial building outside the South East area.
“None of the other major industrial and logistics areas around the UK regions have commanded rents at this level. The reason for the record rent is a lack of supply in the Bristol area, and Bristol is a distribution hotspot that is worth paying a premium for. Although some other new units will be coming along next year, Horizon 38 is the first major speculative scheme in Bristol for a generation.”
Russell Crofts added: “It is good to see that Horizon 38 has been rewarded for being in the vanguard. Now the city needs more supply – and fortunately, that call is being answered. There are four other large industrial buildings set to be delivered by the end of 2019. They are the 105,000 sq ft Western 105 at Western Approach, 137,000 sq ft at Junction One, next to Amazon on Central Park, 132,000 sq ft at Central Approach, and 150,000 sq ft at Access 18. The extra supply will be very good news for the market.”
Record rents for industrial properties over 100,000 sq ft in Bristol had reached £6.50 per sq ft prior to the Horizon 38 deal.
“Whilst investors still focus on the core distribution location of the South East, the South West is now leading the way in terms of rental growth,” said Russell Crofts.
The Horizon 38 development, a joint venture between St Francis Group and iSec, comprises prime industrial and logistics space from 4,500 sq ft – 115,500 sq ft constructed on the former Rolls-Royce Eastworks site.
